Question

just double checking my answers highlighted so far, can anyone double check for me?

An example of an implicit cost of a business firm is payment for the cost of raw materials. wages paid to labor. a company uses its retained profits for capital expansion electric utility expense. The fundamental objective of most firms is making a quality product. increasing market share. achieving employee satisfaction. maximizing profits The consumer's basic problem is to: maximize utility given the budget constraint. minimize the budget constraint given the level of utility. maximize marginal utility relative to income. minimize total utility relative to marginal utility maximize the distance between marginal and total utility. A period of time in which the quantity of at least one input is fixed and the quantity of the other inputs can be varied is called. the market period b. the intermediate run. c. the short run. the long run. Diminishing marginal utility means that: the cost of utility services becomes cheaper as the level of services increases. as an individual's bundle of goods includes more of a particular good, each successive increment yields her less total benefit (utility) as an individual's bundle of goods includes more of a particular good, total willingness to pay falls as an individual's bundle of goods includes more of a particular qood, each successive increment yields her less additional benefit. as the price of a good increases, consumers are willing to buy fewer units of the good

Answer 1

Question 1) Correct answer is (c) a company uses its retained profits for capital expansion (example of implicit cost)

Explicit costs are out-of-pocket costs for a firm—for example, payments for wages and salaries, rent, or materials. Implicit costs are a specific type of opportunity cost: the cost of resources already owned by the firm that could have been put to some other use. For example, an entrepreneur who owns a business could use her labor to earn income at a job.

Now, retained profits is the amount of net income left over for the business after it has paid out dividends to its shareholders.This surplus money can be used for various purposes such as debt repayment, share buybacks, potential merger or acquisition, distributing dividends to shareholders and capital expansion as mentioned in the question.

Question 2) correct answer is (d) maximizing profits

Profit is the life force of firms, without which no firm can survive in a competitive market. Profit making is the fundamental  objective for which a business unit is brought into existence. Profits must be earned to ensure the survival of business, its growth and expansion over time.

Question 3) correct answer is (a) maximize the utility given the budget constraint

Consumer is the one who puchases quantifiable goods in market is faced with a problem of gathering maximum benefit (utility in economic terms) given a set of prices and a sum of money which he intends to spend on those goods (modeled as budget constraint).

Question 4) correct answer is (c) short run

The short run is a period of time in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied. The long run is a period of time in which the quantities of all inputs can be varied.

Question 5) correct answer is (d) as an individual's bundle of goods includes more of a particular good, each successive increment yields her less additional benefit

Diminishing marginal utility means when a consumer increases the consumption of a good, there is a decline in marginal utility derived from each successive unit of that good, while keeping the consumption of other goods constant.Suppose a person consumes tea and beer.Keeeping the consumption of beer fixed, each additional unit of tea would give his additional benefit.