Question

terest rate is noints): Select one best correct answer, and mark your answers in the th e se and of the following refers to the goods and services that are required to A Producer goods B. Consumer goods C. Necessity goods D. Luxury goods Which of the following is considered as real capital? A. Tools B. Machinery C Buildings D. All the above 8. During the making of Barbie Dolls in a factory, the total number of Barbie's changes every day. The cost of factory annual rent is considered as: A. A fixed cost B. A variable cost C. An opportunity cost D. A direct cost Part 1 (3 points): Select one best correct answer, and mark your answers in the table at last page 9. A company estimates its annual expenses, Y, in dollars from Y-0.235x + 7X+4 and the annual revenue in from 0.215 X+ +17 X, where X is annual units sold. The value of X that gives maximum profit is A. 200 Units B. 168 Units C. 250 Units D. 218 Units 10. For the equation: p= a - b D, which one of the following is correct? A. "" is the price per unit that will bring the demand to zero B. When price per unit goes up, demand increases C. When price per unit goes down, demand decreases D. A and B above 11. The total revenues for a product always increase when: A. The demand for the product increases B. None of the above C. The total cost of the product decreases D. A and B above

Answer 1

6) These are called necessities because these are required for daily living. Select C

7) These are assets that are used to produced goods and services. All of them are good. Select D

8) It is a fixed cost because it has to be paid irrespective of the level of production. Select A

9) Profit = Revenue - Cost = 0.215X^2 + 17X - 0.235X^2 - 7X - 4 or 10X - 0.020X^2 - 4.

Profit is maximum when its derivative is 0 which gives 10 - 0.040X = 0 or = X = 250 units. Select C

10) Select A

11) Select A