LSUS MBA 701 Exam 1
marginal benefit MB(Q) - correct answers the change in total benefits arising from a change in the
managerial control variable, Q when using marginal analysis
managerial cost MC(Q) - correct answers the change in total costs arising from a change in the
managerial control variable, Q when using marginal analysis
MNB(Q) = MB(Q) - MC(Q) - correct answers marginal net benefits MNB(Q) equation
increase the managerial control variable up to the point where marginal benefits equal marginal costs.
At this level, the managerial control variable corresponds to the level at which marginal net benefits are
zero; nothing more can be gained by further changes in that variable - correct answers What does the
marginal principle say managers should do to maximize net benefits?
B(Q) = 250Q - 4Q^2 - correct answers what is the equation for the benefit structure of a firm using
marginal analysis?
C(Q) = Q^2 - correct answers what is the equation for the cost structure of a firm using marginal
analysis?
MB(Q) = 250 - 8Q - correct answers what is the equation for the marginal benefit structure of a firm
using marginal analysis?
MC(Q) = 2Q - correct answers what is the equation for the cost structure of a firm using marginal
analysis?
250 - 8Q = 2Q --> Q = 25 - correct answers what value of Q makes NMB(Q) zero in marginal analysis?
marginal value at that point - correct answers what is the slope of a total value curve at a given point
when the control variable is infintely divisible?
the marginal benefit of that level of Q - correct answers what is the slope of the total benefit curve at a
given Q?
the marginal cost of that level of Q - correct answers what is the slope of the total cost curve at a given
Q?
the marginal net benefit of that level of Q - correct answers what is the slope of the net benefit curve at
given Q?
incremental revenues - correct answers the additional revenues that stem from a yes or no decision
incremental costs - correct answers the additional costs that stem from a yes or no decision
thumbs up decision - correct answers when MB > MC
thumbs down decision - correct answers when MB < MC
marginal benefit MB(Q) - correct answers the change in total benefits arising from a change in the
managerial control variable, Q when using marginal analysis
managerial cost MC(Q) - correct answers the change in total costs arising from a change in the
managerial control variable, Q when using marginal analysis
MNB(Q) = MB(Q) - MC(Q) - correct answers marginal net benefits MNB(Q) equation
increase the managerial control variable up to the point where marginal benefits equal marginal costs.
At this level, the managerial control variable corresponds to the level at which marginal net benefits are
zero; nothing more can be gained by further changes in that variable - correct answers What does the
marginal principle say managers should do to maximize net benefits?
B(Q) = 250Q - 4Q^2 - correct answers what is the equation for the benefit structure of a firm using
marginal analysis?
C(Q) = Q^2 - correct answers what is the equation for the cost structure of a firm using marginal
analysis?
MB(Q) = 250 - 8Q - correct answers what is the equation for the marginal benefit structure of a firm
using marginal analysis?
MC(Q) = 2Q - correct answers what is the equation for the cost structure of a firm using marginal
analysis?
250 - 8Q = 2Q --> Q = 25 - correct answers what value of Q makes NMB(Q) zero in marginal analysis?
marginal value at that point - correct answers what is the slope of a total value curve at a given point
when the control variable is infintely divisible?
the marginal benefit of that level of Q - correct answers what is the slope of the total benefit curve at a
given Q?
the marginal cost of that level of Q - correct answers what is the slope of the total cost curve at a given
Q?
the marginal net benefit of that level of Q - correct answers what is the slope of the net benefit curve at
given Q?
incremental revenues - correct answers the additional revenues that stem from a yes or no decision
incremental costs - correct answers the additional costs that stem from a yes or no decision
thumbs up decision - correct answers when MB > MC
thumbs down decision - correct answers when MB < MC
