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<p>1.With regard to organiazational structure and the calculation of costs and profits, which of the following statements is most accurate? Compared to accounting cost, economic costs tend to be</p><p>a. lower, especially for large firms orgainzed as corporations.</p><p>b.higher,especially for large firms orgainzed as corporations.</p><p>c.higher,especially for small firms organized as proprietorships.</p><p>2.four years ago a company purchased a $1 million machine with an estimated useful life of 10 years. For accounting purposed, the machine is bing depreciated in the amount of $100,000 annually. The machine is used to manufacture a particular product and has no alternative use or scrap value.The annual revenue generated from operating the machine is $650000 and the nnual cost of the factors of production,other than depreciation,, employed to generate that revenue is $600000.Should the company continue to operate the machine?</p><p>a.yes</p><p>b.no,because the machine is being operated at a net loss</p><p>c no,because the opportunity cost of operating the machine is zero.</p><p><br/></p>
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