Exam 3: Optimization Techniques and New Management Tools

A firm's demand function is defined as Q = 30 - 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 = 5 and P = 6?

The optimal solution to a problem is best defined as the solution that

If a firm's total cost curve is a straight line, then its average total cost curve will also be a straight line.

If marginal cost (MC) is $10 and average variable cost (AVC) is $10, then AVC

For any given total function, the total is always larger than the average and the average is always larger than the marginal.

Use the information in the table below to determine the average fixed cost of producing 2 units of output. Output 0 1 2 3 4 5 6 7 8 Total Cost 10 11 13 16 20 25 31 38 48

Use the demand schedule that is presented in the table below to determine the optimal rate of production and price when the firm has a constant marginal cost of $10 per unit. Quantity 1 2 3 4 5 6 7 8 9 10 Price 80 60 48 40 34 29 25 20 15 10

If marginal revenue is equal to zero, then

Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price of $8 per unit. Also determine the level of profit (or loss) that the firm will experience at this level of output. Q 0 1 2 3 4 5 6 7 8 9 TC 15 17 18 20 24 30 38 48 60 82

Use the following to answer questions below: -Refer to the total revenue graph. Marginal revenue is decreasing when output is equal to

According to a 1998 survey of AMA sent to global corporations, what was the most important objective the global corporations believe they face?

Which of the following factors does not improve management practices?

Suppose that a firm's total revenue function is defined as TR = 200Q - 20Q². What is average revenue equal to when 1 unit of output is produced?

Given the total cost schedule below, at what level of output is the average cost the lowest? Output 0 1 2 3 4 5 6 Total Cost 10 20 24 27 40 55 90

If a straight line that is tangent to total cost passes through the origin of a graph, then the slope of the line is equal to marginal cost at the point of tangency.

The marginal principle asserts that, in general, when net benefit is maximized

If total profit is at a maximum, marginal profit is zero.

Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price of $6 per unit. Also determine the level of profit (or loss) that the firm will experience at this level of output. Q 0 1 2 3 4 5 6 7 8 9 TC 3 6 8 11 15 20 26 34 55 70

The level of output where a straight line drawn from the origin is tangent to the total cost curve is where

The economic concept that corresponds most closely to a "derivative" in calculus is the concept of