​A Business Owner Makes 50 Items a Day

question 15

Multiple Choice

​A business owner makes 50 items a day.She spends 8 hours in producing those items.If hired elsewhere she could have earned $10 an hour.The item sells for $10 each.Production occurs seven days a week.If the explicit costs total $10,000 a month the economic profit for the month equals:

• A)​$2,600
• B)$2,240
• C)$11,760
• D)​$5,000

Know the initial steps and considerations in conducting a career assessment.

Understand the importance of consistency and accuracy in assessment tools for measuring career interests.

Comprehend the different constructs assessed in career counseling and their relative frequencies of assessment.

Understand the concept of variable costs and how they are influenced by production levels.

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Definitions:

Available Resources

The tangible and intangible assets that can be used or mobilized to achieve specific objectives or to produce goods and services.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Production Possibilities Curve

A graph that depicts the maximum possible output combinations of two goods that can be produced with available resources and technology, illustrating opportunity costs.