Question 1

If marginal revenue is equal to marginal cost, profit must be at a maximum.

Accepted Answer

A) True 
 B)False

Question 2

Use the information in the table below to determine the average variable cost of producing 5 units of output.
$$\begin{array} { l r r r r r r r r r } 
\text { Output } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \
\text { Total Cost } & 10 & 11 & 13 & 16 & 20 & 25 & 31 & 38 & 48
\end{array}$$

Accepted Answer

A)  25 
B)  15 
C)  5 
D)  3 
A)  25 
B)  15 
C)  5 
D)  3

Question 3

If average cost is at a minimum, then

Accepted Answer

A)  it is equal to marginal cost. 
B)  total cost is also at a minimum. 
C)  profit is at a maximum. 
D)  All of the above are true. 
A)  it is equal to marginal cost. 
B)  total cost is also at a minimum. 
C)  profit is at a maximum. 
D)  All of the above are true.

Question 4

Assume that the total cost of production is estimated to be represented by the following function: TC = 75.00 + 10Q. In this production process, the fixed costs of production are?

Accepted Answer

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

Question 5

Average cost is defined as

Accepted Answer

A)  total cost divided by marginal cost. 
B)  total cost divided by total output. 
C)  total output times cost per unit. 
D)  total output times marginal cost. 
A)  total cost divided by marginal cost. 
B)  total cost divided by total output. 
C)  total output times cost per unit. 
D)  total output times marginal cost.

Question 6

A firm's demand function is defined as Q = 100 - 5P. Use this function to calculate total revenue when price is equal to 10 and when price is equal to 12. What is marginal revenue equal to between P = 10 and P = 12?

Accepted Answer

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

If marginal revenue is equal to marginal cost, profit must be at a maximum.

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

If average cost is at a minimum, then

Assume that the total cost of production is estimated to be represented by the following function: TC = 75.00 + 10Q. In this production process, the fixed costs of production are?

Average cost is defined as

A firm's demand function is defined as Q = 100 - 5P. Use this function to calculate total revenue when price is equal to 10 and when price is equal to 12. What is marginal revenue equal to between P = 10 and P = 12?

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

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Exam 3: Optimization Techniques and New Management Tools

If marginal revenue is equal to marginal cost, profit must be at a maximum.

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

If average cost is at a minimum, then

Assume that the total cost of production is estimated to be represented by the following function: TC = 75.00 + 10Q. In this production process, the fixed costs of production are?

Average cost is defined as

A firm's demand function is defined as Q = 100 - 5P. Use this function to calculate total revenue when price is equal to 10 and when price is equal to 12. What is marginal revenue equal to between P = 10 and P = 12?

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