BCOMP 23 Selection

A business sells 2000 units of its product for $14 each. The average variable cost is $6 and total fixed costs are $20,000. Select the correct statement about the business

• It's making a profit of $6000

• It's making a loss of $4000

• It's making a profit of $2000

• It's making a loss of $4000

ABC sold 500 units in the month of June at an average price of $25. Each unit has a cost of sales of $10. Monthly expenses for June were $3000. What was ABC’s gross profit for June?

• $2500

• $2000

• $1000

• -$500

Which of the following is NOT an example of support services when considering the suitability of infrastructure in location decisions?

• Water

• Electricity

• Telecommunications

• Airport

As a business grows, which of the following benefits is most likely to reduce average costs?

• Increased market share

• Increased profits

• Increased economies of scale

• Increased market control

Which of the following is NOT considered a fringe benefit?

• health insurance

• gym membership

• free meals

• A wage raise

The diagram shows the global market for copper with an equilibrium point of X. Which point represents the new equilibrium after the copper producers' costs increase and and there is rapid global economic growth?

• A

• B

• C

• D

A product has a price elasticity of demand of -0.5. What happens to the demand for the product if its price falls from $1 to $0.80?

• It decreases by 10%

• It decreases by 20%

• It increases by 10%

• It increases by 10%

What would be LEAST likely to act as a store of value during a period of rapid inflation?

• cash

• gold

• property

• shares

A government decreased the tax on all goods produced in its country. What is the MOST likely consequence of this?

• a decrease in exports

• an increase in imports

• an increase in production

• a deficit in the balance of payments

The government of a developing country allows a multinational mining company to mine minerals to improve the standard of living of the local people. Which action by the multinational company will NOT lead to an improvement in the living standards?

• building roads to assist transport

• exporting mineral ore

• providing skills training

• sending their profits to their home country