1. During a year of operation, Final Exam Company (FEC) collects $5,000,000 in revenue and spends $3,500,000 on labor ex

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1 During A Year Of Operation Final Exam Company Fec Collects 5 000 000 In Revenue And Spends 3 500 000 On Labor Ex 1 (40.79 KiB) Viewed 9 times

1. During a year of operation, Final Exam Company (FEC) collects $5,000,000 in revenue and spends $3,500,000 on labor expense, raw materials, rent, and utilities. FEC's owner has provided $1,000,000 of her own money to her business instead of investing the money and earning a 12 percent annual rate of return. FEC's explicit costs for the year are $ its implicit costs are $ and thus FEC's total economic profit is $ A $3,500,000, $120,000; $3,620,000 8 $3,500,000; $120,000; $1,380,000 c 5,000,000: $1,000,000, 56,000,000 D $3,500,000 $1,000,000; $4,500,000 2. Which of the following would NOT shift the demand for good A? C A Drop in price of good A 8 Drop in price of related good B D Consumer income Change in the number of consumers 3. As a manager of a company operating in a competitive market, you estimated your company's production function Q-12L-0.3L If each worker is paid $12 per hour and your company has been selling the products for $10, how many workers should be employed to maximize the production? A 9 B 18 C 10 D 20 4. Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm? Price is greater than long-run average cost. A Price is equal to long-run marginal cost. C B Economic profit is zero. The firm produces the output level at which long-run average cost is at its minimum, D 5. You are the manager of a firm that sells its product in a competitive market at a price of $40. Your firm's cost function is C= 60+ 2Q². The profit-maximizing output for your firm is: A 4 B C 10 D 15