Question 1

If a firm's total cost curve is a straight line, then its marginal cost curve will be defined by a horizontal straight line.

Accepted Answer

A) True 
 B)False  True

Question 2

The slope of a tangent to a total curve is equal to the marginal value at the point of tangency.

Accepted Answer

A) True 
 B)False  True

Question 3

Average revenue is equal to marginal revenue between zero units of output and 1 unit of output.

Accepted Answer

A) True 
 B)False  True

Question 4

Given the total cost schedule below, for which unit is the marginal cost the lowest?
$$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline \text { Output } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Total Cost } & 10 & 25 & 30 & 34 & 35 & 40 & 50 \
\hline
\end{array}$$

Accepted Answer

A)  2nd 
B)  3rd 
C)  4th 
D)  5th 
A)  2nd 
B)  3rd 
C)  4th 
D)  5th

Question 5

Assume that the total cost of production is estimated to be represented by the following function: $$T C = 50 + 5 Q ^ { 2 }$$ .What is the marginal cost of production when 5 units of output are produced? What are the fixed costs the firm is facing?

Accepted Answer

The answer of Assume that the total cost of production...

Question 6

If an economic relationship is complex, it must generally be expressed as an equation.

Accepted Answer

A) True 
 B)False

Question 7

Six sigma quality refers to around how many defects per million units produced?

Accepted Answer

A)  3 
B)  53 
C)  103 
D)  1003 
A)  3 
B)  53 
C)  103 
D)  1003

Question 8

A firm's total profit is generally at a maximum when the firm's total revenue curve is above its total cost curve and the vertical distance that separates the two curves is at a maximum.

Accepted Answer

A) True 
 B)False

Question 9

If total cost is increasing, marginal cost is positive.

Accepted Answer

A) True 
 B)False

Question 10

If an average value is greater than its corresponding marginal value, the average value must be decreasing.

Accepted Answer

A) True 
 B)False

Question 11

Given the total product schedule below, at what level of labor is the average product the highest?
$$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline \text { Units of Labor } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Total Product } & 0 & 2 & 5 & 9 & 11 & 13 & 14 \
\hline
\end{array}$$

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 12

If both average cost (AC) and marginal cost (MC) are U shaped, then

Accepted Answer

A)  AC will reach a minimum at a level of output that is less than that at which MC reaches a minimum. 
B)  the total cost curve will be a straight line. 
C)  AC will reach a minimum at a level of output that is greater than that at which MC reaches a minimum. 
D)  both AC and MC will reach a minimum at the same level of output. 
A)  AC will reach a minimum at a level of output that is less than that at which MC reaches a minimum. 
B)  the total cost curve will be a straight line. 
C)  AC will reach a minimum at a level of output that is greater than that at which MC reaches a minimum. 
D)  both AC and MC will reach a minimum at the same level of output.

Question 13

The point where a total value changes from increasing at a decreasing rate to increasing at an increasing rate is called the inflection point.

Accepted Answer

A) True 
 B)False

Question 14

If a firm's total revenue function is a straight line that begins at the origin, then

Accepted Answer

A)  marginal revenue is zero. 
B)  average revenue is zero. 
C)  marginal revenue is equal to average revenue. 
D)  All of the above are true. 
A)  marginal revenue is zero. 
B)  average revenue is zero. 
C)  marginal revenue is equal to average revenue. 
D)  All of the above are true.

Question 15

If output equals 10 and average cost is 20, what is the total cost?

Accepted Answer

A)  2 
B)  30 
C)  100 
D)  200 
A)  2 
B)  30 
C)  100 
D)  200

Question 16

The inflection point refers to the point on a total cost curve where

Accepted Answer

A)  average cost is at a minimum. 
B)  average cost is at a maximum. 
C)  marginal cost is at a minimum. 
D)  marginal cost is at a maximum. 
A)  average cost is at a minimum. 
B)  average cost is at a maximum. 
C)  marginal cost is at a minimum. 
D)  marginal cost is at a maximum.

Question 17

A firm's demand function is defined as Q = 30 - 2P. Use this function to calculate total revenue when price is equal to 10 and when price is equal to 11. What is marginal revenue equal to between P = 10 and P = 11?

Accepted Answer

The answer of A firm's demand function is defined as...

Question 18

Economic relationships can be expressed as equations, graphs, and schedules.

Accepted Answer

A) True 
 B)False

Question 19

Average revenue reaches a maximum at the same level of sales that total revenue reaches a maximum.

Accepted Answer

A) True 
 B)False

Question 20

A firm's demand function is defined as Q = 40 - P. Use this function to calculate total revenue when price is equal to 5 and when price is equal to 6. What is marginal revenue equal to between P = 25 and P = 26?

Accepted Answer

The answer of A firm's demand function is defined as...

If a firm's total cost curve is a straight line, then its marginal cost curve will be defined by a horizontal straight line.

The slope of a tangent to a total curve is equal to the marginal value at the point of tangency.

Average revenue is equal to marginal revenue between zero units of output and 1 unit of output.

Given the total cost schedule below, for which unit is the marginal cost the lowest? Output 0 1 2 3 4 5 6 Total Cost 10 25 30 34 35 40 50

Assume that the total cost of production is estimated to be represented by the following function: $T C = 50 + 5 Q ^ { 2 }$ .What is the marginal cost of production when 5 units of output are produced? What are the fixed costs the firm is facing?

If an economic relationship is complex, it must generally be expressed as an equation.

Six sigma quality refers to around how many defects per million units produced?

A firm's total profit is generally at a maximum when the firm's total revenue curve is above its total cost curve and the vertical distance that separates the two curves is at a maximum.

If total cost is increasing, marginal cost is positive.

If an average value is greater than its corresponding marginal value, the average value must be decreasing.

Given the total product schedule below, at what level of labor is the average product the highest? Units of Labor 0 1 2 3 4 5 6 Total Product 0 2 5 9 11 13 14

If both average cost (AC) and marginal cost (MC) are U shaped, then

The point where a total value changes from increasing at a decreasing rate to increasing at an increasing rate is called the inflection point.

If a firm's total revenue function is a straight line that begins at the origin, then

If output equals 10 and average cost is 20, what is the total cost?

The inflection point refers to the point on a total cost curve where

A firm's demand function is defined as Q = 30 - 2P. Use this function to calculate total revenue when price is equal to 10 and when price is equal to 11. What is marginal revenue equal to between P = 10 and P = 11?

Economic relationships can be expressed as equations, graphs, and schedules.

Average revenue reaches a maximum at the same level of sales that total revenue reaches a maximum.

A firm's demand function is defined as Q = 40 - P. Use this function to calculate total revenue when price is equal to 5 and when price is equal to 6. What is marginal revenue equal to between P = 25 and P = 26?

The Nature and Scope of Managerial Economics

Demand, Supply, and Equilibrium Analysis

Demand Theory

Demand Estimation

Demand Forecasting

Production Theory and Estimation

Cost Theory and Estimation

Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition

Oligopoly and Firm Architecture

Game Theory and Strategic Behavior

Pricing Practices

Regulation and Antitrust: The Role of Government in the Economy

Risk Analysis

Long-Run Investment Decisions: Capital Budgeting

Filters

Exam 3: Optimization Techniques and New Management Tools

If a firm's total cost curve is a straight line, then its marginal cost curve will be defined by a horizontal straight line.

The slope of a tangent to a total curve is equal to the marginal value at the point of tangency.

Average revenue is equal to marginal revenue between zero units of output and 1 unit of output.

Given the total cost schedule below, for which unit is the marginal cost the lowest? Output 0 1 2 3 4 5 6 Total Cost 10 25 30 34 35 40 50

Assume that the total cost of production is estimated to be represented by the following function: TC=50+5Q2T C = 50 + 5 Q ^ { 2 }TC=50+5Q2 .What is the marginal cost of production when 5 units of output are produced? What are the fixed costs the firm is facing?

If an economic relationship is complex, it must generally be expressed as an equation.

Six sigma quality refers to around how many defects per million units produced?

A firm's total profit is generally at a maximum when the firm's total revenue curve is above its total cost curve and the vertical distance that separates the two curves is at a maximum.

If total cost is increasing, marginal cost is positive.

If an average value is greater than its corresponding marginal value, the average value must be decreasing.

Given the total product schedule below, at what level of labor is the average product the highest? Units of Labor 0 1 2 3 4 5 6 Total Product 0 2 5 9 11 13 14

If both average cost (AC) and marginal cost (MC) are U shaped, then

The point where a total value changes from increasing at a decreasing rate to increasing at an increasing rate is called the inflection point.

If a firm's total revenue function is a straight line that begins at the origin, then

If output equals 10 and average cost is 20, what is the total cost?

The inflection point refers to the point on a total cost curve where

A firm's demand function is defined as Q = 30 - 2P. Use this function to calculate total revenue when price is equal to 10 and when price is equal to 11. What is marginal revenue equal to between P = 10 and P = 11?

Economic relationships can be expressed as equations, graphs, and schedules.

Average revenue reaches a maximum at the same level of sales that total revenue reaches a maximum.

A firm's demand function is defined as Q = 40 - P. Use this function to calculate total revenue when price is equal to 5 and when price is equal to 6. What is marginal revenue equal to between P = 25 and P = 26?

The Nature and Scope of Managerial Economics

Demand, Supply, and Equilibrium Analysis

Demand Theory

Demand Estimation

Demand Forecasting

Production Theory and Estimation

Cost Theory and Estimation

Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition

Oligopoly and Firm Architecture

Game Theory and Strategic Behavior

Pricing Practices

Regulation and Antitrust: The Role of Government in the Economy

Risk Analysis

Long-Run Investment Decisions: Capital Budgeting

Filters

Assume that the total cost of production is estimated to be represented by the following function: $T C = 50 + 5 Q ^ { 2 }$ .What is the marginal cost of production when 5 units of output are produced? What are the fixed costs the firm is facing?