You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?

Related Mcqs:

1. Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?

   A. Thomas will pay Roberto between €100 and €150 and Roberto will continue to play loud music
   B. Roberto will pay Thomas €150 and Roberto will continue to play loud music
   C. Thomas will pay Roberto between €100 and €150 and Roberto will stop playing loud music
   D. Roberto will pay Thomas €100 and Roberto will stop playing loud music

2. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

3. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

   A. greater than average cost, greater than average cost
   B. less than average cost, greater than average cost
   C. less than average cost, less than average cost
   D. greater than average cost, less than average cost

4. In an economy measuring (1) total value added (2)total spending on final goods and (3)total factor earning gives the result that ?

   A. 3>2>1
   B. 3=2=1
   C. 3<2<1
   D. any measure can be larger or smaller than any other

5. What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

   A. Bonus
   B. Up level
   C. Goodwill
   D. Upgradation

6. Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true ?

   A. It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound
   B. it is efficient for Roberto to continue to play loud music
   C. It is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet
   D. It is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music

7. A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

   A. £35
   B. £15
   C. £30
   D. £60

8. The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

   A. The price elasticity of demand is -2
   B. The good is inferior
   C. Income elasticity is + 0.5
   D. Income elasticity is + 2

9. To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. increase, increase
   B. increase, decrease
   C. decrease, increase
   D. decrease, decrease

10. Percentage of total industry sales that a particular company controls is called ?

    A. Lion’s share
    B. Market share
    C. Net share
    D. Holding share