The marginal benefit in the table is: \(\begin{array}{|c|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Control } \\ \text { Variable } \end{array} & \begin{array}{c} \text { Total } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Total } \\ \text { Costs } \end{array} & \begin{array}{c} \text { Net } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Benefit } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Net Benefit } \end{array} \\ \hline Q & B(Q) & C(Q) & N(Q) & \boldsymbol{M}(Q) & \boldsymbol{M}(Q) & M N B(Q) \\ \hline 0 & 0 & 0 & 0 & -- & -- & -- \\ \hline 1 & 900 & 100 & 800 & 900 & 100 & 800 \\ \hline 2 & 1,700 & 300 & C & 800 & 200 & 600 \\ \hline 3 & 2,400 & 600 & 1,800 & 700 & E & 400 \\ \hline 4 & A & 1,000 & 2,000 & 600 & 400 & 200 \\ \hline 5 & 3,500 & 1,500 & 2,000 & 500 & 500 & F \\ \hline 6 & 3,900 & 2,100 & 1,800 & D & 600 & -200 \\ \hline 7 & 4,200 & 2,800 & 1,400 & 300 & 700 & -400 \\ \hline 8 & 4,400 & B & 800 & 200 & 800 & -600 \\ \hline 9 & 4,500 & 4,500 & 0 & 100 & 900 & -800 \\ \hline 10 & 4,500 & 5,500 & -1,000 & 0 & 1,000 & -1000 \\ \hline \end{array}\)

A) increasing at a constant rate. B) decreasing at a constant rate. C) increasing at a decreasing rate. D) decreasing at an increasing rate. A) increasing at a constant rate. B) decreasing at a constant rate. C) increasing at a decreasing rate. D) decreasing at an increasing rate.

What is the net benefit associated with producing two units of the control variable,Q (identify point C in the table)? \(\begin{array}{|c|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Control } \\ \text { Variable } \end{array} & \begin{array}{c} \text { Total } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Total } \\ \text { Costs } \end{array} & \begin{array}{c} \text { Net } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Benefit } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Net Benefit } \end{array} \\ \hline Q & B(Q) & C(Q) & N(Q) & \boldsymbol{M}(Q) & \boldsymbol{M}(Q) & M N B(Q) \\ \hline 0 & 0 & 0 & 0 & -- & -- & -- \\ \hline 1 & 900 & 100 & 800 & 900 & 100 & 800 \\ \hline 2 & 1,700 & 300 & C & 800 & 200 & 600 \\ \hline 3 & 2,400 & 600 & 1,800 & 700 & E & 400 \\ \hline 4 & A & 1,000 & 2,000 & 600 & 400 & 200 \\ \hline 5 & 3,500 & 1,500 & 2,000 & 500 & 500 & F \\ \hline 6 & 3,900 & 2,100 & 1,800 & D & 600 & -200 \\ \hline 7 & 4,200 & 2,800 & 1,400 & 300 & 700 & -400 \\ \hline 8 & 4,400 & B & 800 & 200 & 800 & -600 \\ \hline 9 & 4,500 & 4,500 & 0 & 100 & 900 & -800 \\ \hline 10 & 4,500 & 5,500 & -1,000 & 0 & 1,000 & -1000 \\ \hline \end{array}\)

A) 600 B) 800 C) 1,200 D) 1,400 A) 600 B) 800 C) 1,200 D) 1,400

Suppose total benefits and total costs are given by B(Y)= 150Y − 10Y2 and C(Y)= 5Y2.Then marginal benefits are:

A) 150 − 20Y. B) 150Y − 8Y2. C) 15 − 4Y. D) 5 − 20Y. A) 150 − 20Y. B) 150Y − 8Y2. C) 15 − 4Y. D) 5 − 20Y.

Total costs in the table are: \(\begin{array}{|c|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Control } \\ \text { Variable } \end{array} & \begin{array}{c} \text { Total } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Total } \\ \text { Costs } \end{array} & \begin{array}{c} \text { Net } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Benefit } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Net Benefit } \end{array} \\ \hline Q & B(Q) & C(Q) & N(Q) & \boldsymbol{M}(Q) & \boldsymbol{M}(Q) & M N B(Q) \\ \hline 0 & 0 & 0 & 0 & -- & -- & -- \\ \hline 1 & 900 & 100 & 800 & 900 & 100 & 800 \\ \hline 2 & 1,700 & 300 & C & 800 & 200 & 600 \\ \hline 3 & 2,400 & 600 & 1,800 & 700 & E & 400 \\ \hline 4 & A & 1,000 & 2,000 & 600 & 400 & 200 \\ \hline 5 & 3,500 & 1,500 & 2,000 & 500 & 500 & F \\ \hline 6 & 3,900 & 2,100 & 1,800 & D & 600 & -200 \\ \hline 7 & 4,200 & 2,800 & 1,400 & 300 & 700 & -400 \\ \hline 8 & 4,400 & B & 800 & 200 & 800 & -600 \\ \hline 9 & 4,500 & 4,500 & 0 & 100 & 900 & -800 \\ \hline 10 & 4,500 & 5,500 & -1,000 & 0 & 1,000 & -1000 \\ \hline \end{array}\)

A) decreasing at a constant rate. B) decreasing at a decreasing rate. C) increasing at a constant rate. D) increasing at an increasing rate. A) decreasing at a constant rate. B) decreasing at a decreasing rate. C) increasing at a constant rate. D) increasing at an increasing rate.

Suppose total benefits and total costs are given by B(Y)= 150Y − 10Y2 and C(Y)= 5Y2.What level of Y will yield the maximum net benefits?

A) 7 B) 10/9 C) 5 D) 150/20 A) 7 B) 10/9 C) 5 D) 150/20

At what level of output does marginal cost equal marginal revenue? $\begin{array} { c c c } \text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs } \\ 0 & 0 & 0 \\ 10 & 120 & 40 \\ 20 & 200 & 100 \\ 30 & 270 & 170 \\ 40 & 310 & 260 \\ 50 & 330 & 370 \\ \end{array}$

A) 10 B) 20 C) 30 D) 40 A) 10 B) 20 C) 30 D) 40

What is the marginal cost of producing the tenth unit? $\begin{array} { c c c } \text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs } \\ 0 & 0 & 0 \\ 10 & 120 & 40 \\ 20 & 200 & 100 \\ 30 & 270 & 170 \\ 40 & 310 & 260 \\ 50 & 330 & 370 \\ \end{array}$

A) 80 B) 5 C) 40 D) 4 A) 80 B) 5 C) 40 D) 4

Total benefits in the table are: \(\begin{array}{|c|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Control } \\ \text { Variable } \end{array} & \begin{array}{c} \text { Total } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Total } \\ \text { Costs } \end{array} & \begin{array}{c} \text { Net } \\ \text { Benefits } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Benefit } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Net Benefit } \end{array} \\ \hline Q & B(Q) & C(Q) & N(Q) & \boldsymbol{M}(Q) & \boldsymbol{M}(Q) & M N B(Q) \\ \hline 0 & 0 & 0 & 0 & -- & -- & -- \\ \hline 1 & 900 & 100 & 800 & 900 & 100 & 800 \\ \hline 2 & 1,700 & 300 & C & 800 & 200 & 600 \\ \hline 3 & 2,400 & 600 & 1,800 & 700 & E & 400 \\ \hline 4 & A & 1,000 & 2,000 & 600 & 400 & 200 \\ \hline 5 & 3,500 & 1,500 & 2,000 & 500 & 500 & F \\ \hline 6 & 3,900 & 2,100 & 1,800 & D & 600 & -200 \\ \hline 7 & 4,200 & 2,800 & 1,400 & 300 & 700 & -400 \\ \hline 8 & 4,400 & B & 800 & 200 & 800 & -600 \\ \hline 9 & 4,500 & 4,500 & 0 & 100 & 900 & -800 \\ \hline 10 & 4,500 & 5,500 & -1,000 & 0 & 1,000 & -1000 \\ \hline \end{array}\)

A) increasing at a decreasing rate. B) increasing at a constant rate. C) decreasing at a constant rate. D) decreasing at an increasing rate. A) increasing at a decreasing rate. B) increasing at a constant rate. C) decreasing at a constant rate. D) decreasing at an increasing rate.

Exam 1: The Fundamentals of Managerial Economics

The marginal benefit in the table is: Control Variable Total Benefits Total Costs Net Benefits Marginal Benefit Marginal Cost Marginal Net Benefit Q B(Q) C(Q) N(Q) (Q) (Q) MNB(Q) 0 0 0 0 -- -- -- 1 900 100 800 900 100 800 2 1,700 300 C 800 200 600 3 2,400 600 1,800 700 E 400 4 A 1,000 2,000 600 400 200 5 3,500 1,500 2,000 500 500 F 6 3,900 2,100 1,800 D 600 -200 7 4,200 2,800 1,400 300 700 -400 8 4,400 B 800 200 800 -600 9 4,500 4,500 0 100 900 -800 10 4,500 5,500 -1,000 0 1,000 -1000

(Multiple Choice)

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Question 81

What is the net benefit associated with producing two units of the control variable,Q (identify point C in the table)? Control Variable Total Benefits Total Costs Net Benefits Marginal Benefit Marginal Cost Marginal Net Benefit Q B(Q) C(Q) N(Q) (Q) (Q) MNB(Q) 0 0 0 0 -- -- -- 1 900 100 800 900 100 800 2 1,700 300 C 800 200 600 3 2,400 600 1,800 700 E 400 4 A 1,000 2,000 600 400 200 5 3,500 1,500 2,000 500 500 F 6 3,900 2,100 1,800 D 600 -200 7 4,200 2,800 1,400 300 700 -400 8 4,400 B 800 200 800 -600 9 4,500 4,500 0 100 900 -800 10 4,500 5,500 -1,000 0 1,000 -1000

(Multiple Choice)

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Question 82

In order to maximize net benefits,the managerial control variable should be used up to the point where:

(Multiple Choice)

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Question 83

Suppose the growth rate of the firm's profit is 7 percent,the interest rate is 10 percent,and the current profits of the firm are $120 million.What is the value of the firm?

(Multiple Choice)

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Question 84

As more firms enter an industry:

(Multiple Choice)

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Question 85

Suppose total benefits and total costs are given by B(Y)= 150Y − 10Y² and C(Y)= 5Y².Then marginal benefits are:

(Multiple Choice)

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Question 86

When dealing with present value,a higher interest rate:

(Multiple Choice)

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Question 87

If the interest rate is 10 percent and cash flows are $1,000 at the end of year one and $2,000 at the end of year two,then the present value of these cash flows is:

(Multiple Choice)

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Question 88

Economic profits are:

(Multiple Choice)

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Question 89

A potential entrepreneur is trying to decide whether to open a new health spa.She currently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa.If she chooses to open the spa,it will cost her $200,000 per year in rent and other operating expenses. a.What are her accounting costs? b.What are her opportunity costs? c.How much would she need to make in revenues to earn positive accounting profits? Positive economic profits?

(Essay)

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Question 90

Total costs in the table are: Control Variable Total Benefits Total Costs Net Benefits Marginal Benefit Marginal Cost Marginal Net Benefit Q B(Q) C(Q) N(Q) (Q) (Q) MNB(Q) 0 0 0 0 -- -- -- 1 900 100 800 900 100 800 2 1,700 300 C 800 200 600 3 2,400 600 1,800 700 E 400 4 A 1,000 2,000 600 400 200 5 3,500 1,500 2,000 500 500 F 6 3,900 2,100 1,800 D 600 -200 7 4,200 2,800 1,400 300 700 -400 8 4,400 B 800 200 800 -600 9 4,500 4,500 0 100 900 -800 10 4,500 5,500 -1,000 0 1,000 -1000

(Multiple Choice)

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Question 91

Suppose total benefits and total costs are given by B(Y)= 150Y − 10Y² and C(Y)= 5Y².What level of Y will yield the maximum net benefits?

(Multiple Choice)

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Question 92

If the interest rate is 12.5 percent,what is the present value of $200 received in one year?

(Multiple Choice)

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Question 93

Scarce resources are ultimately allocated toward the production of goods most wanted by society because:

(Multiple Choice)

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Question 94

At what level of output does marginal cost equal marginal revenue? No. Units Produced Total Revenue Total Costs 0 0 0 10 120 40 20 200 100 30 270 170 40 310 260 50 330 370

(Multiple Choice)

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Question 95

What is the marginal cost of producing the tenth unit? No. Units Produced Total Revenue Total Costs 0 0 0 10 120 40 20 200 100 30 270 170 40 310 260 50 330 370

(Multiple Choice)

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Question 96

The lower the interest rate:

(Multiple Choice)

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Question 97

Because of producer−producer rivalry,the price will tend to:

(Multiple Choice)

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Question 98

Total benefits in the table are: Control Variable Total Benefits Total Costs Net Benefits Marginal Benefit Marginal Cost Marginal Net Benefit Q B(Q) C(Q) N(Q) (Q) (Q) MNB(Q) 0 0 0 0 -- -- -- 1 900 100 800 900 100 800 2 1,700 300 C 800 200 600 3 2,400 600 1,800 700 E 400 4 A 1,000 2,000 600 400 200 5 3,500 1,500 2,000 500 500 F 6 3,900 2,100 1,800 D 600 -200 7 4,200 2,800 1,400 300 700 -400 8 4,400 B 800 200 800 -600 9 4,500 4,500 0 100 900 -800 10 4,500 5,500 -1,000 0 1,000 -1000

(Multiple Choice)

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Question 99

Compute the present value of a perpetual bond that pays a monthly cash flow of $1,000 at an annual interest rate of 12 percent.

(Multiple Choice)

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Question 100

In order to maximize net benefits,the managerial control variable should be used up to the point where:

Suppose the growth rate of the firm's profit is 7 percent,the interest rate is 10 percent,and the current profits of the firm are $120 million.What is the value of the firm?

As more firms enter an industry:

Suppose total benefits and total costs are given by B(Y)= 150Y − 10Y² and C(Y)= 5Y².Then marginal benefits are:

When dealing with present value,a higher interest rate:

If the interest rate is 10 percent and cash flows are $1,000 at the end of year one and $2,000 at the end of year two,then the present value of these cash flows is:

Economic profits are:

Suppose total benefits and total costs are given by B(Y)= 150Y − 10Y² and C(Y)= 5Y².What level of Y will yield the maximum net benefits?

If the interest rate is 12.5 percent,what is the present value of $200 received in one year?

Scarce resources are ultimately allocated toward the production of goods most wanted by society because:

At what level of output does marginal cost equal marginal revenue? No. Units Produced Total Revenue Total Costs 0 0 0 10 120 40 20 200 100 30 270 170 40 310 260 50 330 370

What is the marginal cost of producing the tenth unit? No. Units Produced Total Revenue Total Costs 0 0 0 10 120 40 20 200 100 30 270 170 40 310 260 50 330 370

The lower the interest rate:

Because of producer−producer rivalry,the price will tend to:

Compute the present value of a perpetual bond that pays a monthly cash flow of $1,000 at an annual interest rate of 12 percent.

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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