Managerial Economics & Business Strategy 10th Edition by Michael Baye Test bank
control variable.
33.
Award: 1.00 point
34.
Award: 1.00 point
In order to maximize net benefits, firms should produce where
total benefits equal total costs.
profits are zero.
marginal cost is minimized.
marginal benefits equal marginal costs.
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] Given the cost function C(Y) = 6Y 2 , what is the marginal cost?
6Y
Y 2
3Y
12Y
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
35.
Award: 1.00 point
36.
Award: 1.00 point
[Appendix material: calculus required] Given the benefit function B(Y) = 400Y − 2Y 2 , the marginal benefit is
200Y.
400 − 2Y 2 .
400 − 4Y.
800 − 2Y.
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) = 100Y − 8Y 2 and C(Y)
= 10Y 2 . Then marginal benefits are
100 − 16Y.
100Y − 8Y 2 .
50 − 4Y.
200Y − 10Y.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
37.
Award: 1.00 point
38.
Award: 1.00 point
[Appendix material: calculus required] Suppose total benefits and total costs are given by B(Y) = 100Y − 8Y 2 and C(Y)
= 10Y 2 . Then marginal costs are
20Y 2 .
40.
5Y.
20Y.
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) = 100Y − 8Y 2 and C(Y) =
10Y 2 . What level of Y will yield the maximum net benefits?
rev: 06_12_2021_QC_CS-267206
75/36
75/18
60/18
100/36
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
39.
Award: 1.00 point
40.
Award: 1.00 point
[Appendix material: calculus required]. Suppose total benefits and total costs are given by B(Y) = 70Y − 5Y 2 and C(Y) =
10Y 2 . What level of Y will yield the maximum net benefits?
70/30.
100/60.
75/18.
50/18.
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] Suppose total benefits and total costs are given by B(Y) = 100Y − 8Y 2 and C(Y)
= 10Y 2 . What is the maximum level of net benefits (rounded to the nearest whole number)?
92
139
78
613
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
41.
Award: 1.00 point
42.
Award: 1.00 point
If a producer offers a price that is in excess of a consumer's valuation of the good, the consumer
must buy the good at that price.
will refuse to purchase the good.
must revalue the good.
will take out a loan to purchase the good.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
Negotiations between the buyer and seller of a new house are an example of
consumer–consumer rivalry.
consumer–producer rivalry.
producer–producer rivalry.
monopoly.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-04 Apply the five forces
framework to analyze the sustainability of an
industry's profits.