The difference between marginal benefits and marginal costs are the:
Topic: The Production Process and Costs Quiz ( MCQ and Answer )
The change in net benefits that arise from a one unit change in quantity is the:
The additional cost incurred by using an additional unit of the managerial control variable is defined as the:
The additional benefits that arise by using an additional unit of the managerial control variable is defined as the:
To maximize profits, a firm should continue to increase production of a good until:
Suppose the interest rate is five percent, the expected growth rate of the firm is two percent, and the firm is expected to continue forever. If current profits are $1,000, what is the value of the firm?
A firm will have constant profits of $100,000 per year for the next four years and the interest rate is six percent. Assuming these profits are realized at the end of each year, what is the present value these future profits?
A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savings will be realized at the end of each year. If the interest rate is seven percent, what is the net present value of purchasing the tractor?
When dealing with present value, a higher interest rate:
If the interest rate is five percent, the present value of $200 received at the end of five years is:
If you put $1,000 in a savings account at an interest rate of 10%, how much money will you have in one year?
If the interest rate is 5%, what is the present value of ten dollars received one year from now?
The opportunity cost of receiving ten dollars in the future as opposed to getting that ten dollars today is:
Scarce resources are ultimately allocated toward the production of goods most wanted by society because:
As more firms enter an industry
The primary inducement for new firms to enter an industry is:
Which of the following signals to the owners of scarce resources are the best uses of those resources?
Which of the following is an implicit cost of going to college?
Which of the following is an implicit cost to a firm that produces a good or service?
Economic profits are:
Accounting profits are:
If the interest rate is 10% and cash flows are $1,000 at the end of year one and $2,000 at the end of year two, then the present value of these cash flows is?