Test #2 Practice Test #2: Answer Key Exam number 2 will take place on Monday‚ April 8th‚ 2013. This‚ the second of two practice exams‚ will be the subject of class on Wednesday. It will not be graded‚ but will serve only as practice material accurately representing the content and format of the exam. 1.) Walter used to work as a high school teacher for $40‚000 per year but quit in order to start his own painting business. To invest in his painting business‚ he withdrew $20‚000 from his savings
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CHAPTER 9 Three conditions for a market to be perfectly competitive? Many buyers and sellers‚ with all firms selling identical products‚ and no barriers to new firms entering the market. In perfectly competitive markets‚ prices are determined by The interaction of market demand and supply because firms and consumers are price takers. Price taker Buyer or seller that is unable to affect the market price. A buyer or seller that takes the market price as given When are firms likely to be
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and exit Short Run Firm has some market power and faces downward sloping demand curve Price exceeds marginal cost When P>AC firms earn positive economic profits Long Run Positive economic profits in short run attracts new firms Firm’s market share falls and demand curve shifts down P=AC firms earn 0 economic profit P>MC and 0 economic profits deadweight loss Market in which only a few firms compete with one another‚ and entry by new firms is impeded Oligopoly Environment Few
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FUNDAMENTALS OF ECONOMICS 11th December 2011 EXAMINATION PAPER Section A Section B Answer ALL questions in SECTION A. Answer TWO questions in SECTION B. Clearly cross out surplus answers. Time Allowed: 2.5 Hours Candidates are allowed to bring in a scientific calculator for this module. Graph paper will be provided by the Centre. © NCC Education Ltd 2011 SECTION A ANSWER ALL QUESTIONS Question 1 a) Explain what is meant by the opportunity cost of producing a good. (2 marks) b)
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David Shim Case Study #2 A) What is the break-even point in passengers and revenues per month? Unit CM = $160 – $70= $90 Unit of Sales = 3‚150‚000 / $90= 35‚000 passengers Unit of Sales = 35‚000 x $160= $5‚600‚000 revenue B) What is the break-even point in number of passenger train cars per month? Unit of Sales = 35‚000/63= 555.5= 556 passenger cars C) If Springfield Express raises its average passenger fare
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The MIRR and NPV decision criteria can never conflict. The IRR method can never be subject to the multiple IRR problem‚ while the MIRR method can be. One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on a generally more reasonable reinvestment rate assumption. The higher the WACC‚ the shorter the discounted payback period. The MIRR method assumes that cash flows are reinvested at the crossover rate. | A; $37.05 YR1 Dividend
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Examination Paper: Hotel Management IIBM Institute of Business Management Examination Paper MM.100 Front Office Management Section A: Objective Type (30 Marks) • • • This section consists of Multiple Choice Questions and Short Questions Answer all the questions Part one carries 1 mark each and Part 2 questions carry 5 marks each. Part One: Multiple Choices: 1. To create a
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$10‚000 Utilities $1‚000 Interest on bank loan $10‚000 ________________________________________ Calculate (a)the explicit costs‚ (b) the implicit costs (c) the business profit (d) the economic profit and (e) the normal return on investment in the business. a) Explicit Costs = $45‚000 + $15‚000 + $10‚000 + $1‚000 + $10‚000 = $81‚000 b) Implicit Costs = Opportunity Cost – which is her salary foregone = $25‚000 c)
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1) Discuss the owner-manager conflict within the firm. Provide two real world manifestations of the conflict. Owner-manager conflicts finds it basis on the self-interested behaviors of managers‚ owners and shareholders. Firm managers may have personal goals that conflict with the owner’s goals of maximizing shareholder wealth. Potential conflicts occur when managers seek to maximize their own utility at the expense of the firm’s shareholders. Conflict between owners and managers typically arise
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Part B - Case study: Laura learns a lesson Laura was newly promoted to section head when Molly‚ the section receptionist‚ handed in her resignation pending the birth of her first child. Upon receiving the resignation‚ Laura rang a colleague‚ Amy‚ to say that she wanted her to replace Molly as soon as Molly left. Laura then contacted the HR Department to advise them she wanted to appoint Amy to replace Molly. The HR Department advised that all job vacancies must be advertised externally and that
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