Managerial Economics & Business Strategy 10th Edition by Michael Baye Test bank
Award: 1.00 point
119.
Award: 1.00 point
[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 200Y − 10Y 2 . Then
marginal benefits are
200 − 20Y.
200Y.
20Y.
200 - 10Y.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 150Y − 10Y 2 and C(Y)
= 5Y 2 . Then marginal costs are
2.5Y.
25Y.
5Y.
10Y.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
120.
Award: 1.00 point
121.
Award: 1.00 point
[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 150Y − 10Y 2 and C(Y) =
20Y2. Then marginal costs are
40Y.
20Y.
2Y.
4Y.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 150Y − 10Y 2 and C(Y)
= 5Y 2 . What level of Y will yield the maximum net benefits?
7
10/9
5
150/20
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
122.
Award: 1.00 point
123.
Award: 1.00 point
[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 220Y − 15Y 2 and C(Y)
= 10Y. What level of Y will yield the maximum net benefits?
7
10/9
5
150/20
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the current profits of the firm
are $60 million. What is the value of the firm?
$289.4 million
$3,270 million
$4,480.6 million
$375 million
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-05 Apply present value
analysis to make decisions and value assets.
124.
Award: 1.00 point
125.
Award: 1.00 point
Suppose the growth rate of the firm's profit is 4 percent, the interest rate is 6 percent, and the current profits of the firm
are $50 million. What is the value of the firm?
$2,650 million.
$2,600 million.
$73.5 million.
$78.4 million.
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-05 Apply present value
analysis to make decisions and value assets.
Suppose the growth rate of the firm's profit is 4 percent, the interest rate is 5 percent, and the current profits of the firm
are $75 million. What is the value of the firm?
$2,111.5 million
$7,766.6 million
$10,600 million
$7,875 million
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-05 Apply present value
analysis to make decisions and value assets.
126.
Award: 1.00 point
127.
Award: 1.00 point
Which of the following is the incorrect statement?
The marginal benefits curve is the slope of the total benefits curve.
dB(Q)/dQ = MB.
The slope of the net benefit curve is vertical where MB = MC.
The vertical difference between the total benefit curve and the total cost curve is maximized at the optimal
level of Q.
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
[Appendix material: calculus required] When MB = 171 − 8Y and TC = 5Y 2 + 108, the optimal level of Y is
25.
9.5.
8.
24.
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
128.
Award: 1.00 point