Explain the opportunity cost of preparing your own tax

Question

1. Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in two hours. You value your time at $11 an hour. The tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is

1. $55.
2. $40.
3. $165.
4. $110.

2. Economic profits are equal to

1. gross profit minus selling and operating expenses.
2. total revenues minus the costs of raw materials.
3.  total revenues minus fixed costs.
4. total revenues minus the opportunity costs of all inputs.

3.The long run is a period of time, or a time frame, in which

1. the capacity of the production plant is fixed.
2. the level of output is fixed.
3.  all resources are fixed.
4. the amount of all resources can be varied.

4. Fixed costs are those costs which are

1. unchanging through time.
2. zero if the firm produces no output in the short run.
3. independent of the rate of output.
4. implicit to a competitive firm.

5. At an output of 20,000 units per year, a firm's variable costs are $80,000 and its average fixed costs are $3. The total costs per year for the firm are:

1. $240,000.
2. $100,000.
3. $80,000.
4. $140,000.