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QUESTION:3 [QUESTION BANK ID:74760] TYPE:MULTIPLE CHOICE CORRECT The U.S. Government bought 112,000 acres of land in southeastern Colorado in 1968 for $17,500,000. The cost of using this land today exclusively for the reintroduction of the black-tailed prairie dog << HIDE ANSWERS AIs zero, because they already own the land BIs zero, because the land represents a sunk cost CIs equal to the market value of the land
DDepends on the value to society of black-tailed prairie dogs QUESTION:4 [QUESTION BANK ID:89965] TYPE:MULTIPLE CHOICE INCORRECT A brewery is considering two potential production investments. Option A costs an initial $2 million and will involve constant marginal cost of $5 Option B costs an initial $4 million and will involve constant marginal cost of $3 In order to make the calculations simple, assume that the annual capital cost is 10% of the total investment. At what production quantity per year would the brewery be indifferent between these two investment opportunities? << HIDE ANSWERS QUESTION:5 [QUESTION BANK ID:19731] TYPE:MULTIPLE CHOICE CORRECT Smitty's Hot Boiled Peanuts recently reported that its revenue increased from the previous quarter along with its profits. What is the most likely explanation for this change if the only change Smitty’s made was in its price? << HIDE ANSWERS