The Profit for a Particular Project of Blue Fin Ltd,using

question 5

Multiple Choice

The profit for a particular project of Blue Fin Ltd,using the percentage of completion method,was $470 000 for year 1 and $690 000 for year 2 (completion) .
-What difference would there be to profit for year 1 if the completion of production method were used?

• A) Profit would be $470 000 lower.
• B) Profit would be $470 000 higher.
• C) There would be no difference.
• D) It cannot be determined from the above information.

Differentiate between short-run and long-run cost structures and their implications for firm decision-making.

Recognize the relevance and implications of sunk costs and the sunk cost fallacy in economic decision-making.

Interpret diagrams related to cost curves, including total costs, average costs, and marginal costs.

Understand economies and diseconomies of scale and their impact on firm costs over different ranges of output.