Suppose total benefits and total costs are given by B(Y) = 100Y – 8Y2 and C(Y) = 10Y2. Then marginal costs are:
Multiple Choice Quizzes with Answer in English (Page: 424)
Suppose total benefits and total costs are given by B(Y) = 100Y – 8Y2 and C(Y) = 10Y2. Then marginal benefits are:
Given the benefit function B(Y) = 400Y – 2Y2, the marginal benefit is:
Given the cost function C(Y) = 6Y2, what is the marginal cost?
In order to maximize net benefits, firms should produce where:
The difference between marginal benefits and marginal costs are the:
The change in net benefits that arise from a one unit change in quantity is the:
The difference between marginal benefits and marginal costs are the:
The change in net benefits that arise from a one unit change in quantity is the:
The additional cost incurred by using an additional unit of the managerial control variable is defined as the:
The additional benefits that arise by using an additional unit of the managerial control variable is defined as the:
To maximize profits, a firm should continue to increase production of a good until:
Suppose the interest rate is five percent, the expected growth rate of the firm is two percent, and the firm is expected to continue forever. If current profits are $1,000, what is the value of the firm?
A firm will have constant profits of $100,000 per year for the next four years and the interest rate is six percent. Assuming these profits are realized at the end of each year, what is the present value these future profits?
A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savings will be realized at the end of each year. If the interest rate is seven percent, what is the net present value of purchasing the tractor?
When dealing with present value, a higher interest rate:
If the interest rate is five percent, the present value of $200 received at the end of five years is:
If you put $1,000 in a savings account at an interest rate of 10%, how much money will you have in one year?
If the interest rate is 5%, what is the present value of ten dollars received one year from now?
The opportunity cost of receiving ten dollars in the future as opposed to getting that ten dollars today is: