SSE 103 FINAL EXAM Name: PART I: MULTIPLE CHOICE QUESTIONS (240 points) There is
ID: 1126952 • Letter: S
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SSE 103 FINAL EXAM Name: PART I: MULTIPLE CHOICE QUESTIONS (240 points) There is a total of 30 multiple choice questions. Each is worth 8 points C Date: BEST answer. Blackboard the correct "bubble" on the scantron INOTE: I will grade based on ONLY the answer on your scantron form.l 1. An example of an explicit cost of production would be the cost of forgone labor earnings for an entrepreneur b. a. the lost opportunity to invest in capital markets when the money is invested in one's business. lease payments for the land on which a firm's factory stands. d. c. Both a and c are correct. 2. Which of the following is an implicit cost? 0) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Str firm (ii) interest paid on the firm's debt (iii)rent paid by the firm to lease office space a. (ii) and (iii) b. (i) and (iii) c. (i) only d. (iii) only XYZ corporation produced 300 units of output but sold only 275 of the units it produced. Th production for each unit of output produced was S100. Each of the 275 units sold was sold for a price of $95 Total profit for the XYZ corporation would be a. -$3,875 b. $26,12:5 c. $28,500. d. $30,000. e average cost of 3. 4. Explicit costs a. require an outlay of money by the firm. b. include all of the firm's opportunity costs c. include income that is forgone by the firm's owners. d. Both b and c are correct.Explanation / Answer
1. c) is correct answer
It is a direct payment made to others in course of running companies or business. Examples of rents wages and input costs
2.c) is correct
It does not require cash outlay. it is an opportunity cost of owners or managers time.
3.a) is correct answer
Total profit= total income - total cost
= 95×275-100×300
= -$3875
4.a) is correct answer
Explicit cost is the outlet for running a business.
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