Assignment 2 (20 points)
Assignment 2: Costs and Profit
Instructions
Save this file in your course folder and name it with Assignment, the section number, and your first
Initial and last name. For example, Jossie Robinson's assignment for Section 1 would be named
Assignment Robinson
Type the answers to the assignment questions below. Use complete sentences unless the question
says otherwise. You will have more than one day to complete an assignment. At the end of each day,
be sure to save your progress
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
Assignment Questions
In Section 2, you learned about costs and profit. Now, you'll apply what you learned.
1. Choose a real or made up example of a company, and describe at least three variable
costs the company has. (1-3 sentences. 1.5 points)
2. Choose a real or made up example of a company, and describe at least three fixed costs
the company has. (1-3 sentences. 1.5 points)
3. Is gross profit or net profit more important to consider when you're deciding how
successful and profitable a company is? Why? Explain. (1-3 sentences 2.0 points)
4. If you were running a company, describe at least two things you would do to improve its
productivity. (1-4 sentences 2.0 points)
5. Describe at least two advantages a large company has over a smaller company. (1-4
sentences 2.0 points)
6. Choose a good you are familiar with, and analyze its economic utility, using the questions
below. NOTE: Choose a good for this exercise, not a service,
a. What type of good did you choose? (1 sentence. 1.0 points)

According to the research in strategic human resources management,answers: firms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially simplistic human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially complex human and organizational resources gain little advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially complex human and organizational resources are at a competitive disadvantage when compared to firms that do not engage in these practices.

The market price of cheeseburgers in a college town increased recently, and the students in an economics class are debating the cause of the price increase. some students suggest that the price increased because the price of beef, an important ingredient for making cheeseburgers, has increased. other students attribute the increase in the price of cheeseburgers to a recent increase in college student enrollment.1. the first group of students thinks the increase in the price of cheeseburgers is due to the fact that the price of beef, an important ingredient for making cheeseburgers, has increased. (what happened to demand and supply, shift to the right or left)2. the second group of students attributes the increase in the price of cheeseburgers to the increase in college student enrollment. (what happens to demand and supply, shift to the right or left)3. suppose that both of the events you analyzed above are partly responsible for the increase in the price of cheeseburgers. based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the increase in the price of cheeseburgers? (choose a, b,c, or d)a)if the price increase was small, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.b)if the equilibrium quantity of cheeseburgers decreases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift.c)if the equilibrium quantity of cheeseburgers decreases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.d)whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.

The market yield on spice grills' bonds is 15%, and the firm's marginal tax rate is 33%. what is their shareholders' required return if the equity risk premium is 4%?