CHAPTER 2--ECONOMIC OPTIMIZATION Key 1. An equation is: an analytical expression of functional relationships. A. B. a visual representation of data. C. a table of electronically stored data. D. a list of economic data. E. Demand and Supply 2. Inflection is: A. a line that touches but does not intersect a given curve. B. a point of maximum slope. C. a measure of the steepness of a line. D. an activity level that generates highest profit. 3. The breakeven level of output occurs where: A. marginal cost equals average cost. B. marginal profit equals zero. C. total profit equals zero. D. marginal cost equals marginal revenue. 4. Incremental profit is: A. the change in profit that results from a unitary change in output. B. total revenue minus total cost. C. the change in profit caused by a given managerial decision. D. the change in profits earned by the firm over a brief period of time. 5. The incremental profit earned from the production and sale of a new product will be higher if: A. the costs of materials needed to produce the new product increase. B. excess capacity can be used to produce the new product. C. existing facilities used to produce the new product must be modified. D. the revenues earned from existing products decrease.
CHAPTER 2--ECONOMIC OPTIMIZATION Key 1. An equation is: A. an analytical expression of functional relationships. B. a visual representation of data. C. a table of electronically stored data. D. a list of economic data. E. Demand and Supply 2. Inflection is: A. a line that touches but does not intersect a given curve. B. a point of maximum slope. C. a measure of the steepness of a line. D. an activity level that generates highest profit. 3. The breakeven level of output occurs where: A. marginal cost equals average cost. B. marginal profit equals zero. C. total profit equals zero. D. marginal cost equals marginal revenue. 4. Incremental profit is: A. the change in profit that results from a unitary change in output. B. total revenue minus total cost. C. the change in profit caused by a given managerial decision. D. the change in profits earned by the firm over a brief period of time. 5. The incremental profit earned from the production and sale of a new product will be higher if: A. the costs of materials needed to produce the new product increase. B. excess capacity can be used to produce the new product. C. existing facilities used to produce the new product must be modified. D. the revenues earned from existing products decrease.
Test-Bank-Managerial-Economics-12th-Edition-Mark-Hirschey.docx