5) which of the following is an example of a sunk cost, as it relates to a firm?
a.an expenditure on raw materials used in the production process.
b.an expenditure on a nonrefundable, nontransferable airline ticket.
c.an expenditure to buy a delivery van.
d.an expenditure for a new factory.
6) In the quintile distribution of income, the term “quintile” represents:
A.5 percent of the income receivers.
B.10 percent of the income receivers.
C.20 percent of the income receivers.
D.25 percent of the income receivers.
7) firms seek to maximize:
a.per unit profit.
b.total revenue.
c.total profit.
d.market share.
8)
Refer to the above graphs. Growth of production capacity is shown by:
A.the shift from AB to CD only.
B.the shift from X to Y only.
C.both the shift from AB to CD and the shift from X to Y
D.both the shift from AB to CD and the shift from Y to X