Homework answers / question archive / University of Illinois, Urbana Champaign - ECON 102  ECON 102 CA1/CA2 FA17 ~— Profit Maximization and Costs > Quiz 6: Profit Maximization and Costs Started on Saturday, November 4, 2017, 1:27 AM State Finished Completed on Saturday, November 4, 2017, 2:10 AM Time taken 43 mins 14 secs Question 1 0 $70 $18 eee 2 fee 3 fmm eee os fm 6 fm) me The table shows the cost information for Bonita’ s pet-sitting service, where quantity of output is the number of clients served per day

University of Illinois, Urbana Champaign - ECON 102  ECON 102 CA1/CA2 FA17 ~— Profit Maximization and Costs > Quiz 6: Profit Maximization and Costs Started on Saturday, November 4, 2017, 1:27 AM State Finished Completed on Saturday, November 4, 2017, 2:10 AM Time taken 43 mins 14 secs Question 1 0 $70 $18 eee 2 fee 3 fmm eee os fm 6 fm) me The table shows the cost information for Bonita’ s pet-sitting service, where quantity of output is the number of clients served per day

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University of Illinois, Urbana Champaign - ECON 102

 ECON 102 CA1/CA2 FA17 ~— Profit Maximization and Costs >

Quiz 6: Profit Maximization and Costs

Started on Saturday, November 4, 2017, 1:27 AM

State Finished

Completed on Saturday, November 4, 2017, 2:10 AM

Time taken 43 mins 14 secs

Question 1

0 $70 $18

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2 fee

3 fmm

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6 fm) me

The table shows the cost information for Bonita’ s pet-sitting service, where

quantity of output is the number of clients served per day. Think about the number

you would put in the total cost column, and then answer this question. What is the

average total cost of serving 2 clients?

Select one:

a. $21

b. $56

 c. $35

d. $16

Question 2 Wendy leaves her job as a dancer to start her own dance studio. As a dancer, she

Correct made $34,000 per year. During the first year she paid $4,300 per year for insurance,

$1846 for music and licensing fees, $150 for a boom box, and $11,300 for rent and

ecu out utilities. She received $60,480 in tuition payments. Wendy's economic profit was

OT Ll.

Select one:

a. $8,884

b. $60,480

c. $42,884

d. $51,596

Question 3 The average total cost of producing cell phones in a factory is $20 at the current

Correct output level of 100 units per week. If fixed cost is $1,200 per week:

Select one:

a. average variable cost is $8.

b. total cost is $3,200.

c. variable cost is $2,000.

d. average fixed cost is $20.

Question 4

Correct Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders

 per month. Cindy's monthly total fixed costs are $500, and her monthly total

1.00 points out variable costs are $1,000. If for some reason Cindy's variable cost increased to

of 1.00 $4,000, then her:

Select one:

a. average variable costs would decrease.

b. marginal costs would increase.

c. All of the choices are correct.

d. average fixed costs would increase.

Question 5 King's Inc. produces 250 sweaters per week. The average variable cost per sweater

Correct is $3.75 and average fixed costs are $1.50 per sweater. Total cost per week is:

Select one:

 

a. $562.50.

b. $1312.50.

c. $656.25.

d. $5.25.

Question 6

 

0 $70 $18

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2 fee

3 fmm

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os fm

6 fm) me

The table shows the cost information for Bonita’ s pet-sitting service, where

quantity of output is the number of clients served per day. Think about the number

you would put in the total cost column, and then answer this question. What is the

marginal cost of increasing output from 5 clients to 6 clients?

Select one:

a. $25

b. $120

c. $95

d. $75

Question 7

You own a small deli that produces sandwiches, soups, and other items for

customers in your town. Which of the following is a variable input in the production

Select one:

a. employees hired to help make the food

b. the rent you pay on your establishment

c. a large oven you purchase by taking a large loan

d. the dining room where customers eat their meals

Question 8 Money spent by a firm to bribe a corrupt foreign minister of commerce, who then is

Correct imprisoned, is a(n):

 Select one:

 

a. explicit cost.

b. sunk cost.

c. surplus cost.

d. implicit cost.

Question 9 Austin's total fixed cost is $3,600. Austin employs 20 workers and pays each worker

Correct $60. The average product of labor is 30, and the marginal product of the twentieth

worker is 12. What is the marginal cost of the last unit produced by the last worker

Select one:

a. $5

b. $240

c. $0.20

d. $720

Question 10 When a cherry orchard in Oregon adds an additional worker, the total cost of

Correct production increases by $24,000. Adding the worker increases total cherry output

by 600 pounds. Therefore, the marginal cost of the last pound of cherries produced

Select one:

a. $4,000.

b. $19.

c. $40.

d. $24,000.