A company currently sells 10,00 . units at $9/unit and makes $20,00 . accounting profit. Variable costs currently stand at $6 per unit. By how much would variable costs have to increase before the company makes zero accounting profits?
a. $1.00
b. $2.00
c. $3.00
d. $4.00
b
You might also like to view...
In order to protect key industries, some countries impose taxes on their exports instead of imports, mainly because it is easier to collect taxes from the export industry
a. True b. False Indicate whether the statement is true or false
According to dynamic tax analysis, continually increasing the tax rate will eventually
A) cause an increase in the tax base. B) have no impact on the tax base. C) cause a decrease in the tax base. D) result in an initial decrease in the tax base followed ultimately by a rise in the tax base.
Queuing, or waiting in line, is an alternative rationing mechanism to price rationing.
Answer the following statement true (T) or false (F)
The reason that only final sales are counted in GDP is
A. to not count production in other countries. B. to avoid double counting goods that are sold so as to be resold. C. because the government can't get records on intermediate sales. D. to simplify the computation and no other reason.