Marginal Cost and Correct Answer

Good Essays
Question 1
5 out of 5 points

Economic profit is defined as the difference between revenue and ____.
Answer
Selected Answer: total economic cost
Correct Answer: total economic cost
Question 2
5 out of 5 points

Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency should be where the marginal benefit of an additional pap-test:
Answer
Selected Answer: equals the marginal cost of the test

Correct Answer: equals the marginal cost of the test

Question 3
5 out of 5 points

The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Answer
Selected Answer: innovation theory of profit
Correct Answer: innovation theory of profit
Question 4
5 out of 5 points

To reduce Agency Problems, executive compensation should be designed to:
Answer
Selected Answer: create incentives so that managers act like owners of the firm.
Correct Answer: create incentives so that managers act like owners of the firm.
Question 5
5 out of 5 points

Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?
Answer
Selected Answer: common stock
Correct Answer: common stock
Question 6
5 out of 5 points

Generally, investors expect that projects with high expected net present values also will be projects with
Answer
Selected Answer: high risk
Correct Answer: high risk
Question 7
0 out of 5 points

The ____ is the ratio of ____ to the ____.
Answer
Selected Answer: correlation coefficient; standard deviation; expected value
Correct Answer: coefficient of variation; standard deviation; expected value

You May Also Find These Documents Helpful

  • Good Essays

    primary objective of a for-profit firm is to ___________. Selected Answer: Correct Answer: 5 out of 5 points maximize shareholder value maximize shareholder value Question 2 5 out of 5 points The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? Selected Answer: Correct Answer: innovation theory of profit innovation theory of profit Question…

    • 1421 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Costs and Correct Answer

    • 931 Words
    • 4 Pages

    uestion 7 1 out of 1 points Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed.Refer to the above data. Diminishing marginal returns become evident with the addition of the:Answer Selected Answer: third worker. Correct Answer: third worker. Question 8 1 out of 1 points Answer the question on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources…

    • 931 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Costs and Correct Answer

    • 1572 Words
    • 7 Pages

    Inventoriable costs are expensed when incurred. Answer Selected Answer: False Correct Answer: False Question 2 1 out of 1 points Correct Finished goods inventory is ordinarily held for sale by a manufacturing company. Answer Selected Answer: True Correct Answer: True Question 3 1 out of 1 points Correct Indirect labor is not a component of manufacturing overhead. Answer Selected Answer: False Correct Answer: False Question 4 1 out of 1 points Correct The following equation…

    • 1572 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Jump to Navigation Frame Your location: Assessments › View All Submissions › View Attempt View Attempt 1 of 2 Title: | Exam 2 (Chapters 10-18) | Started: | July 7, 2011 12:16 AM | Submitted: | July 7, 2011 2:11 AM | Time spent: | 01:54:47 | Total score: | 94/200 = 47% Total score adjusted by 0.0 Maximum possible score: 200 | 1. | Chapter 10 #265 | | Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB) makes…

    • 23982 Words
    • 96 Pages
    Satisfactory Essays
  • Good Essays

    Marginal Cost

    • 909 Words
    • 4 Pages

    particular function, dy/dx = 4x - 3. If it is known that when x = 1, y = 5, find y in terms of x. 6. A manufacturing process costs RM 6500 to set up for one year’s use. If items cost RM 85 each to produce and other costs amount to 3.5 x2, where x is the production in hundreds, find the level of production that will minimise the cost per item over the year. What will the total cost amount to at this level of production? 7. The marketing department of Spager Ltd estimated that if the selling price of…

    • 909 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Costs and Marginal Cost

    • 6120 Words
    • 25 Pages

    shape. The campaign manager should then spend the campaign’s budget on the combination of the two inputs will that maximize the number of votes. 5. For each of the following examples, draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case? a. A firm can hire only full-time employees to produce its output, or it can hire some combination of full-time and part-time employees. For each full-time worker let go, the firm must hire an increasing…

    • 6120 Words
    • 25 Pages
    Powerful Essays
  • Better Essays

    Marginal Cost

    • 828 Words
    • 4 Pages

    help the business to function and the cost of the product will determine what the managers of the business decides. Marginal costs are change in total costs divided by change in output. Marginal revenue is the change in total revenue divided by change in output. Increase in fixed costs means that when the fixed costs cannot be changed it is the short run and when the fixed costs change it is the long run. The second questions that I chose to answer was the following: A managerial decision…

    • 828 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Correct Answer

    • 3895 Words
    • 16 Pages

    ear. Answer Selected Answer: True Correct Answer: False . Question 2 .0 out of 1 points To keep Church officials happy, Veronese decided to repaint his entire artwork depicting Christ feasting with disciples and members of the Venetian elite. Answer Selected Answer: True Correct Answer: False . Question 3 .0 out of 1 points Auguste Rodin was told by a government official that he should put clothes on his overly sexualized figures in The Kiss. Answer Selected Answer:…

    • 3895 Words
    • 16 Pages
    Satisfactory Essays
  • Good Essays

    Economics Luis D. Maymí Romero University of Phoenix ECO/212 Prof. Mayra Malpica Rivera April 27, 2015 Economics There are four principals of decision making: People face trade-off The cost of something is what you give up to get it Rational people think at the margin People respond to incentives The first principle can be summarized with the following phrase “There’s never a free lunch” every time that you need something you have to give something in return. One example is an employee that needs…

    • 687 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Marginal Revenue and Marginal Cost An understanding of marginal revenue and marginal cost is economically crucial to owning and operating a successful business. Marginal revenue is the amount of change in total revenue by selling one additional product. So if a company sells four extra unit of product and brings extra total revenue of 500 dollars than the marginal revenue for this month would be 125 dollars. This is found by taking the change in total revenue, 500 dollars, and dividing it by the…

    • 660 Words
    • 3 Pages
    Good Essays