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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. 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
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. 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.
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. 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
The correct answer is: $56
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 Level: D Topic Firms, Profits and Economic Costs
b. $60,480
c. $42,884
d. $51,596
Your correct answer is $8,884
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.
The correct answer is: average variable cost is $8.
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.
The correct answer is: marginal 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.
The correct answer is: $1312.50.
Question 6
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. 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
The correct answer is: $25
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
Correct answer is: employees hired to help make the food
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.
The correct answer is: sunk 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
The correct answer is: $5
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.
The correct answer is: $40.
