1) Sensitivity analysis is rarely done because the data used in most studies is very accurate.
2) Process A has fixed costs of $10,000 and unit costs of $4.50 each, process B has fixed costs of $25,000 and unit costs of $1.50 each. At what production would the two processes have the same total costs?
a) 50 units
b) 500 units
c) 5,000 units
d) 50,000 units
3) For a certain commodity, prices increase by 50% the first year and 30% the second year.
Determine the average inflation rate for this commodity over this two-year period.
4) In 2010, Trucking Inc. had $1,250,000 in revenues and $1,013,000 in expenses. What are the Average and Marginal Tax rates respectively? (round to nearest whole percent)
a) 29% Average, 25% Marginal
b) 39% Average, 31% Marginal
c) 32% Average, 39% Marginal
d) 34% Average, 39% Marginal