Managerial Economics & Business Strategy 10th Edition by Michael Baye Test bank
marginal revenue equals marginal cost.
average cost equals average revenue.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
23.
Award: 1.00 point
24.
Award: 1.00 point
What is the marginal benefit of producing the third unit?
Number Units Produced Total Benefit Total Costs
0 0 0
1 100 50
2 180 110
3 250 180
4 290 270
5 310 380
250
70
0
90
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
What is the marginal cost of producing the fifth unit?
Number Units Produced Total Benefit Total Costs
0 0 0
1 100 50
2 180 110
3 250 180
4 290 270
5 310 380
270
110
50
0
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
25.
Award: 1.00 point
26.
Award: 1.00 point
At what level of output does marginal cost equal marginal benefit?
Number Units Produced Total Benefit Total Costs
0 0 0
1 100 50
2 180 110
3 250 180
4 290 270
5 310 380
1
2
3
4
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
What is the level of net benefits when four units are produced?
Number Units Produced Total Benefit Total Costs
0 0 0
1 100 50
2 180 110
3 250 180
4 290 270
5 310 380
0
70
−70
20
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
27.
Award: 1.00 point
28.
Award: 1.00 point
What is the level of net benefits when two units are produced?
Number Units Produced Total Benefit Total Costs
0 0 0
1 100 50
2 180 110
3 250 180
4 290 270
5 310 380
70.
50.
40.
80.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
What is the marginal net benefit of producing the fourth unit?
Number Units Produced Total Benefit Total Costs
0 0 0
1 100 50
2 180 110
3 250 180
4 290 270
5 310 380
−50
0
60
40
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
29.
Award: 1.00 point
30.
Award: 1.00 point
The additional benefits that arise by using an additional unit of the managerial control variable is defined as the
total benefit.
opportunity cost.
marginal benefit.
present value of benefits.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
The additional cost incurred by using an additional unit of the managerial control variable is defined as the
total cost.
net cost.
net benefit.
marginal cost.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
31.
Award: 1.00 point
32.
Award: 1.00 point
The change in net benefits that arises from a one-unit change in quantity is the
marginal net benefits.
total net benefits.
variable benefits.
present value benefits.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
The difference between marginal benefits and marginal costs is the
profits.
marginal net benefits.
opportunity cost.
accounting cost.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial