Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The annual fixed costs for the business sum to
A. $25,000.
B. $79,000.
C. $104,000.
D. $208,000.
Answer: C
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In the figure above, if the market is unregulated, the price will be
A) $250 per unit. B) $200 per unit. C) $150 per unit. D) $100 per unit.
If the demand for online banking increases, we would expect to see the
A) supply of workers that produce online-banking services to increase. B) supply of workers that produce online-banking services to decrease. C) demand for workers that produce online-banking services to decrease. D) demand for workers that produce online-banking services to increase.
A corporation can elect to allocate corporate profits into either
A. Interest payments or dividends. B. Capital gains or dividends. C. Bonds or stocks. D. Dividends or retained earnings.
Among the following situations, which one is least likely to apply to a monopolistically competitive firm?
a. profit is positive in the short run b. total cost exceeds total revenue in the short run c. profit is positive in the long run d. total revenue equals total cost in the long run