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a. measure how a % cha… Show more Production elasticity (P

a. measure how a % cha… Show more Production elasticity (Points : 1) a. measure how a % change in output affect the % change in an input b. is not important for a company that makes a physical product c. measure the % change in output for a % change in an input d. is given by the exponent on the input in a linear production function 17. How do you determine the optimal amount of labor to use when labor is the only variable input? (Points : 1) a. MPL=CL b. MPL=MPK c. MPL/MPK=1 d. None of above 18. The optimal usage of two variable inputs is determined by: (Points : 1) a. The Iso-quant for the production process b. MPK=MRTS C. MPK=MCL d. None of above 19. Productive activity includes all but (Points : 1) a. stockbrokers b. loan officers at a bank c. work around the house, which you perform d. the service industries e. none above 20. In a company fixed costs are $ 1300.00 per month, variable cost is $ 9.00 per hour and price charged per hour is $ 15.00 (This is a service company). Break even number of hours per month are about: (Points : 1) a. 650 b. 216 c. 422 d. None of above 21. Given information in question 20 above, the degree of operating leverage at 480 hours of service sold is about: (Points : 1) a. 2.62 b. 1.82 c. 11.82 d. 4.62 e. None of above 22. An individual’s annual income is $100,000. The person is considering opening their own business. Expected revenues for the business, if they open it, is 2 million the first year. Salaries for employees are expected to be 1.5 million. Operating expenses (rent, supplies, etc. ) are expected to be $250,000. To start the business the individual must borrow $500,000 from the bank at an interest rate of 15%. Equipment will cost $50,000. At the end of the year, the value of the equipment will be $30,000, even though the depreciation expense for tax purposes is only $5,000 during the first year. The pre-tax accounting profit will be: (Points : 1) a. -28,000 b. 26,000 c. 50,100 d. None of above 23. Continue with question 23, The economic profit will be: (Points : 1) a. 50,100 b. 80,000 c. 122,000 d. None of above 24. If expected sales is 2,300 units and the standard deviation is 150. What is the probability of an operating loss? (Points : 1) a. 2.28% b. 15.87% c. 50% d. Not enough information • Show less

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