Managerial Economics & Business Strategy 10th Edition by Michael Baye Test bank

$4,280 million
$4,400 million
$6,800 million
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-05 Apply present value
analysis to make decisions and value assets.
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 93.
Award: 1.00 point
 94.
Award: 1.00 point
The opportunity cost of an action is the
monetary payment the action required.
value of the most highly valued alternative action given up.
cost of all alternative actions that could have been taken.
amount a person pays another person to not take the action.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
What is the total benefit associated with producing four units of the control variable, Q (identify point A 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) MB(Q) MC(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 −1,000
600
2,600
3,000
3,400
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
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 95.
Award: 1.00 point
What is the total cost associated with producing eight units of the control variable, Q (identify point B 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) MB(Q) MC(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 −1,000
3,000
3,600
3,800
4,200
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
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 96.
Award: 1.00 point
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) MB(Q) MC(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 −1,000
600
800
1,200
1,400
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
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 97.
Award: 1.00 point
What is the marginal benefit associated with producing six units of the control variable, Q (identify point D 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) MB(Q) MC(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 −1,000
600
400
200
100
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
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 98.
Award: 1.00 point
What is the marginal cost associated with producing three units of the control variable, Q (identify point E in the table)?