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)