Question 1

What is the main role of economic profits?

Accepted Answer

A)  To signal where resources are most highly valued 
B)  To help firms cover their production costs 
C)  To help consumers cover their opportunity cost 
D)  None of the statements associated with this question are correct. 
A)  To signal where resources are most highly valued 
B)  To help firms cover their production costs 
C)  To help consumers cover their opportunity cost 
D)  None of the statements associated with this question are correct.

Question 2

The higher the interest rate,the greater the:

Accepted Answer

A)  present value. 
B)  net present value. 
C)  Both A and B are correct. 
D)  Neither A nor B is correct. 
A)  present value. 
B)  net present value. 
C)  Both A and B are correct. 
D)  Neither A nor B is correct.

Question 3

When MB = 300 − 12Y and TC = 12Y + 108,the optimal level of Y is:

Accepted Answer

A)  25. 
B)  4.5. 
C)  8. 
D)  24. 
A)  25. 
B)  4.5. 
C)  8. 
D)  24.

Question 4

Your firm's research department has estimated your total revenues to be R(Q)= 3,000 - 8Q2 and your total costs to be C(Q)= 100 + 2Q2.(Note that MB = 3,000 - 16Q and MC = 4Q.)
a.What level of Q maximizes net benefits?
b.What is marginal benefit at this level of Q?
c.What is marginal cost at this level of Q?
d.What is the maximum level of net benefits?
e.What is another word for net benefits in this example?

Accepted Answer

a.Setting MNB(Q)= 3000 − 20Q = 0 and sol

Question 5

What is the marginal revenue of producing the fortieth unit?

$\begin{array} { c c c } 
 \text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs  } \
 0 & 0 & 0 \
 10 & 120 & 40 \
 20 & 200 & 100 \
 30 & 270 & 170 \
 40 & 310 & 260 \
 50 & 330 & 370 \
\end{array}$

Accepted Answer

A)  4 
B)  80 
C)  7.75 
D)  40 
A)  4 
B)  80 
C)  7.75 
D)  40

What is the main role of economic profits?

The higher the interest rate,the greater the:

When MB = 300 − 12Y and TC = 12Y + 108,the optimal level of Y is:

What is the marginal revenue of producing the fortieth 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

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

Filters

Exam 1: The Fundamentals of Managerial Economics

What is the main role of economic profits?

The higher the interest rate,the greater the:

When MB = 300 − 12Y and TC = 12Y + 108,the optimal level of Y is:

What is the marginal revenue of producing the fortieth 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

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

Filters