Question : 21) Vipsana’s Gyros House sells gyros. The cost of ingredients : 1245254

21) Vipsana’s Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. Calculate Vipsana’s total cost per day when she produces 50 gyros using two workers?

A) $100

B) $124.40

C) $220

D) $340

22) Vipsana’s Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. Calculate Vipsana’s average fixed cost per day when she produces 50 gyros using two workers?

A) $2.00

B) $2.40

C) $4.40

D) $6.80

23) Vipsana’s Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. What is Vipsana’s total cost per day when she does not produce any gyros and does not hire any workers?

A) $0

B) $2

C) $60

D) $120

24) Which of the following statements best describes the economic short run?

A) It is a period of one year or less.

B) It is a period during which firms are free to vary all of their inputs.

C) It is a period during which at least one of the firm’s inputs is fixed.

D) It is a period during which fixed inputs become variable inputs because of depreciation.

25) When firms analyze the relationship between their level of production and their costs they separate the time period involved into

A) morning and evening.

B) 6 months or less; 6 months to 1 year; more than 1 year.

C) a fixed period and a variable period.

D) the short run and the long run.

26) The long run refers to a time period

A) during which a firm is able to purchase all of its inputs, including its plant and equipment.

B) long enough for a firm to vary all of its inputs, to adopt new technology and change the size of its physical plant.

C) long enough for a firm to pay all of its creditors in full.

D) long enough for a firm to change the use of its variable inputs.

27) Which of the following can a firm do in the long run but not in the short run?

A) decrease the size of its physical plant

B) reduce its rate of output by laying off workers

C) increase its variable costs

D) increase its use of raw materials

28) Which of the following statements is false?

A) An explicit cost is a nonmonetary opportunity cost.

B) In the short run: total cost = fixed cost + variable cost.

C) Variable costs are costs that change as output changes.

D) In the long run there are no fixed costs.

29) In the long run which of the following is true?

A) Total cost = fixed cost + variable cost.

B) The size of a firm’s physical plant can be changed but the firm cannot adopt new technology.

C) There are no fixed costs.

D) The firm can vary its explicit costs but not its implicit costs.

30) Which of the following are implicit costs for a typical firm?

A) the cost of labor

B) the opportunity cost of capital owned and used by the firm

C) the cost of energy used in production

D) a business licensing fee