# Bank id 128064 type multiple choice correct it costs

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QUESTION:6[QUESTION BANK ID:128064]TYPE:MULTIPLE CHOICECORRECTIt costs your company \$200 to produce pens and pencils together. To produce the same amount of pens and pencils separately costs \$100 for the pens and \$120 for the pencils. The production of pens and pencils exhibits<< HIDE ANSWERSADiseconomies of scopeBEconomies of scope
QUESTION:7[QUESTION BANK ID:99741]TYPE:MULTIPLE CHOICECORRECTA firm is producing 10,000 units of output. Price at this output level is \$16.00 for each unit, and marginal revenue is \$13.00. Average per unit cost is \$12.00, and marginal cost is \$12.50. From this information, we can conclude that the business<< HIDE ANSWERS
QUESTION:8[QUESTION BANK ID:92611]TYPE:MULTIPLE CHOICECORRECTMr. D's Barbeque of Pickwick, TN, produces 10,000 dry-rubbed rib slabs per year. Annually, Mr.D's fixed costs are \$50,000. The average variable cost per slab is a constant \$2. Suppose Mr. D smoked 10% more ribs.<< HIDE ANSWERSA
QUESTION:9TYPE:MULTIPLE CHOICE
[QUESTION BANK ID:61370]CORRECTIf a firm's average cost is falling (economies of scale) with output, then<< HIDE ANSWERSAMarginal cost is less than average costBMarginal cost is risingCMarginal cost is greater than average costDAverage cost is rising as a function of output
QUESTION:10[QUESTION BANK ID:14901]TYPE:MULTIPLE CHOICECORRECTThe fixed cost of Boeing's new aircraft, the 797, is \$6 billion. The average variable cost is \$100,000,000. The sales price is \$ 140,000,000. What is the projected breakeven volume?<< HIDE ANSWERS
QUESTION:11[QUESTION BANK ID:50038]TYPE:MULTIPLE CHOICECORRECTWhich of the following is an example of a sunk cost for a car manufacturer trying to decide whether to go to market with a concept car?<< HIDE ANSWERS
QUESTION:12[QUESTION BANK ID:6874]TYPE:MULTIPLE CHOICECORRECTYou expect to sell 500 cell phones a month, which have a marginal cost of \$50. If your fixed costs are \$5,000 per month, what is the breakeven price?<< HIDE ANSWERS