The details of the production process of a certain commodity and its market price is given...

 

 

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The details of the production process of a certain commodity and its market price is given be Price/unit (P) = $2 Quantity produced (Q) = 12,000 Variable cost/unit (V) = $0.5 Fixed cost (F) = $14,000 If the variable cost per unit increases to $0.7, the profit will decrease by: O $2,400 O $3,000 $2,600 $1,800 QUESTION 21 The level of production where a firm earns zero economic profit is referred to as: the shutdown point. O the point where the revenue is maximum. O the breakeven point. the minimum point on the average fixed cost curve. 20 Wrong QUESTION 22 The details of the production process of a certain commodity and its market price is given below: Price/unit (P) = $2 Quantity produced (Q) = 12,000 Variable cost/unit (V) = $0.50 Fixed cost (F) = $14,000 What is the unit contribution margin if the variable cost per unit rises to $0.70? $2 $1.30 $1.70 $1.50 QUESTION 23 Businesses which have mostly fixed costs: will suffer huge losses as the sales volume drops below breakeven level. Owill have a lower unit contribution margin. will see low correlation between rise in revenue and rise in profits with sales beyond the breakeven level will gain modest profits if the sales grow beyond breakeven level. QUESTION 24 According to the law of demand: O an excess supply will lower the price level. O the quantity demanded will rise if the price rises. O a consumer will demand more of a good if its price falls. an Increase in demand will raise the price level. The details of the production process of a certain commodity and its market price is given be Price/unit (P) = $2 Quantity produced (Q) = 12,000 Variable cost/unit (V) = $0.5 Fixed cost (F) = $14,000 If the variable cost per unit increases to $0.7, the profit will decrease by: O $2,400 O $3,000 $2,600 $1,800 QUESTION 21 The level of production where a firm earns zero economic profit is referred to as: the shutdown point. O the point where the revenue is maximum. O the breakeven point. the minimum point on the average fixed cost curve. 20 Wrong QUESTION 22 The details of the production process of a certain commodity and its market price is given below: Price/unit (P) = $2 Quantity produced (Q) = 12,000 Variable cost/unit (V) = $0.50 Fixed cost (F) = $14,000 What is the unit contribution margin if the variable cost per unit rises to $0.70? $2 $1.30 $1.70 $1.50 QUESTION 23 Businesses which have mostly fixed costs: will suffer huge losses as the sales volume drops below breakeven level. Owill have a lower unit contribution margin. will see low correlation between rise in revenue and rise in profits with sales beyond the breakeven level will gain modest profits if the sales grow beyond breakeven level. QUESTION 24 According to the law of demand: O an excess supply will lower the price level. O the quantity demanded will rise if the price rises. O a consumer will demand more of a good if its price falls. an Increase in demand will raise the price level.

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20 The details of the production process of a certain commodity and its market price is given below Priceunit P 2 Quantity produced Q 12000 Variable c... View the full answer