Managerial Economics & Business Strategy 10th Edition by Michael Baye Test bank
net marginal benefits equal zero.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-06 Apply marginal analysis
to determine the optimal level of a managerial
control variable.
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 horizontal where MB = MC.
The difference in the slope of 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.
65.
Award: 1.00 point
66.
Award: 1.00 point
Which of the following is the incorrect statement?
dB(Q)/dQ TB.
The slope of the net benefit curve is horizontal where MB MC.
The marginal benefits curve is the slope of the total benefits curve.
The difference between total benefit and total cost 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 = 300 − 12Y and TC = 12Y + 108, the optimal level of Y is
25.
4.5.
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.
67.
Award: 1.00 point
68.
Award: 1.00 point
Incentive plans imply
if managers get highly paid, then they work hard.
if managers put forth little effort, they receive little pay; if they put forth much effort and hence generate
many sales, they receive a lot of pay.
managers are not selfish.
managers should be watched all the time.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
Which of the following is not a source of rivalry in economic transactions?
consumer–producer rivalry
producer–producer rivalry
government–producer rivalry
consumer–consumer rivalry
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
69.
Award: 1.00 point
70.
Award: 1.00 point
Consumer–producer rivalry occurs because of
consumers' high valuation and producers' low production cost of a good.
producers' high production cost and consumers' low valuation of a good.
the competing interests of consumers and producers.
the competing interests of consumers and suppliers of inputs.
References
Multiple Choice Difficulty: 01 Easy Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
Trade will take place
if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is
willing and able to accept for a good.
if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is
willing and able to accept for a good.
only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is
willing and able to accept for a good.
if the maximum amount that a consumer is willing to pay equals 0.
References
Multiple Choice Difficulty: 02 Medium Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
71.
Award: 1.00 point
72.
Award: 1.00 point
Consumer–consumer rivalry
increases the negotiating power of consumers in the marketplace.
reduces the negotiating power of producers in the marketplace.
reduces the negotiating power of consumers in the marketplace.
increases the likelihood of government intervention in the marketplace.
References
Multiple Choice Difficulty: 03 Hard Learning Objective: 01-01 Summarize how goals,
constraints, incentives, and market rivalry affect
economic decisions
Consumer–consumer rivalry arises because of