Exam 3: Optimization Techniques and New Management Tools

Total cost is equal to average cost times marginal cost.

Use the demand schedule that is presented in the table below to determine the optimal rate of production and price when the firm has the following marginal cost function: MC = 1 + Q/2. Quantity 1 2 3 4 5 6 7 8 9 10 Price 80 60 48 40 34 29 25 20 15 10

Assume that the total cost of production is estimated to be represented by the following function: TC = 75.00 + 10Q. What is the average cost of production when the level of output is 100?

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

Use the total cost (TC) schedule that is presented in the table below to calculate average total cost, average variable cost, average fixed cost, and marginal cost when output (Q) is equal to 5. Q 0 1 2 3 4 5 6 7 8 9 TC 5 7 8 10 14 20 28 38 50 72

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

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

Differential calculus can be used to solve problems in cases where economic relationships are expressed in the form of

Use the following to answer questions below : -Refer to the total cost graph. What is the marginal cost of producing the second unit of output?

Use the demand schedule that is presented in the table below to determine the optimal rate of production and price when the firm has the following marginal cost function: MC = 1 + Q. Quantity 1 2 3 4 5 6 7 8 9 10 Price 80 60 48 40 34 29 25 20 15 10

Given the total product schedule below, for which unit of labor is the marginal product of labor the highest? Units of Labor 0 1 2 3 4 5 6 Total Product 0 2 5 9 14 21 25

Use the following to answer questions below : -Refer to the total cost graph. What is average fixed cost equal to when Q = 5?

Use the production relationship between total product (Q) and units of labor (L) employed that is presented in the table below to calculate the average and marginal product of labor when L = 5. L 1 2 3 4 5 6 7 8 9 Q 3 7 13 17 20 22 23 23 22

What does SWOT stand for?

If a firm's marginal revenue is negative, then total revenue will decrease if the firm sells more output.

If a firm's marginal revenue is greater than its marginal cost, then the firm should

Constantly improving the quality of products and processes so as to consistently deliver increasing value to customers is known as

If an average value is equal to its corresponding marginal value, the average value must be at either a maximum or a minimum.

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 15 17 18 20 24 30 38 48 60 82

Use the total cost equation and fill the table provided below? What is the fixed cost? 0 - - 1 2 3