Exam 2: Optimal Decisions Using Marginal Analysis

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The following table shows the total revenue (in dollars)and total cost (in dollars)from the production and sale of different units of a product. Table 2-1 -Refer to Table 2-1.What is the firm's profit from the sale of the 3rd unit of the good?

(Multiple Choice)

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Question 41

Given the total cost equation for a firm,the marginal cost equation can be derived by:

(Multiple Choice)

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Question 42

Which of the following is true of a firm that faces a downward sloping demand curve?

(Multiple Choice)

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Question 43

A manufacturing company produces and sells small farm tractors.Its annual fixed costs are $15 million,and its marginal cost per tractor is $20,000.Demand for small tractors is given by: P = 30,000 - Q,where P denotes price in dollars and Q is annual sales. (a)Find the firm's profit-maximizing output,price,and annual profit.

(Essay)

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Question 44

Suppose a firm's inverse demand function is P = 40 - 8Q.What is the firm's revenue function?

(Multiple Choice)

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Question 45

Suppose,at its current output level,a firm's marginal profit is positive.Therefore,to maximize profit,it should:

(Multiple Choice)

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Question 46

Showing 41 - 46 of 46

The following table shows the total revenue (in dollars)and total cost (in dollars)from the production and sale of different units of a product. Table 2-1 -Refer to Table 2-1.What is the firm's profit from the sale of the 3rd unit of the good?

Given the total cost equation for a firm,the marginal cost equation can be derived by:

Which of the following is true of a firm that faces a downward sloping demand curve?

Suppose a firm's inverse demand function is P = 40 - 8Q.What is the firm's revenue function?

Suppose,at its current output level,a firm's marginal profit is positive.Therefore,to maximize profit,it should:

Introduction to Economic Decision Making

Demand Analysis and Optimal Pricing

Estimating and Forecasting Demand

Production

Cost Analysis

Perfect Competition

Monopoly

Oligopoly

Game Theory and Competitive Strategy

Regulation, Public Goods, and Benefit-Cost Analysis

Decision Making Under Uncertainty

The Value of Information

Asymmetric Information and Organizational Design

Bargaining and Negotiation

Auctions and Competitive Bidding

Linear Programming

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