Question 1

The next  questions refer to the following:
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year.
-If doctors make $40,000 a year, what do nurses make?

Accepted Answer

The last doctor hired treated 1,600 extra patients in a year and makes $40,000 a year. The last nurse hired treated 1,000 extra patients in a year, so the nurse must make $40,000 * (1000/1600) = $25,000 a year.

Question 2

The next  questions refer to the following:
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year.
-If doctors make $80,000 a year and nurses make $40,000 a year, then

Accepted Answer

DThe clinic is currently optimizing its payroll by getting the most patients treated for the money spent. The productivity per dollar spent can be calculated for both doctors and nurses. For doctors, it's 1,600 patients per $80,000, or 20 patients per $1,000. For nurses, it's 1,000 patients per $40,000, or 25 patients per $1,000. This means the clinic could serve more patients by hiring fewer doctors and more nurses, as nurses treat more patients per dollar spent than doctors do. This indicates that the clinic is not making the correct decision based on the additional patients treated per dollar spent, as the efficiency is higher for nurses.

Question 3

refer to the following:
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $30,000 and that of a market researcher is $20,000. The marginal contribution of engineers and market researchers are
 
-If the manager currently has two engineers and one market researcher, what must be true?

Accepted Answer

D

Question 4

refer to the following:
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000, while a market researcher receives $20,000. The marginal contributions of engineers and market researchers are:
  
-If the manager currently hires four engineers and one market researcher, what must be true?

Accepted Answer

The answer of refer to the following:
A manager in charge...

Question 5

refer to the following:
The manager of the customer service department at a bank can hire employees with a high school degree (HS) who earn $10,000 annually or employees with a bachelor's degree (B) who earn $20,000. The manager wants to maximize the number of customers served given a fixed payroll.
 
-If the manager currently has three HS and three B, what must be true?

Accepted Answer

The answer of refer to the following:
The manager of the...

Question 6

A publishing house is using 400 printers and 200 printing presses to produce books. The printers' wage rate is $20 and the price of a printing press is $100. The last printer added 20 books to total output, while the last press added 50 books to total output. In order to maximize the number of books published with a budget of $28,000, the publishing house

Accepted Answer

The marginal product per dollar spent on printers is higher (20 books/$20 = 1 book per dollar) than on presses (50 books/$100 = 0.5 books per dollar), indicating more efficient use of funds with printers.

Question 7

In a constrained maximization problem with two activities, A and B, the highest level of benefits obtainable at a given level of cost is achieved when _______________ equals ____________ and the constraint is met.

Accepted Answer

The answer of In a constrained maximization problem with two...

Question 8

The marginal benefit and marginal cost functions for activity A are
MB = 100 - 0.04A
MC = 28 + 0.02A
-The optimal level of A is _________ units at which MB = _________ and MC = ____________.

Accepted Answer

The answer of The marginal benefit and marginal cost functions...

Question 9

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 800^th unit of A increases total benefit by $_________ and total cost by $_________ thereby _____________________ net benefit by $__________.

Accepted Answer

The answer of The marginal benefit and marginal cost functions...

Question 10

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 1,400^th unit of A increases total benefit by $______ and total cost by $______ thereby _____________________ net benefit by $__________.

Accepted Answer

The answer of The marginal benefit and marginal cost functions...

Question 11

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions.
 
-Net benefit is maximized when _________ units of A are chosen; marginal benefit is $_________ and marginal cost is $_________.

Accepted Answer

The answer of Use the following graph showing the marginal...

Question 12

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions.
 
-If 300 units of A are chosen, net benefit will increase by $_________ if one _________ unit of A is used.

Accepted Answer

The answer of Use the following graph showing the marginal...

Question 13

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions.
 
-If 100 units of A are chosen, net benefit will increase by $_________ if one _________ unit of A is chosen.

Accepted Answer

The answer of Use the following graph showing the marginal...

Question 14

Fill in the blanks in the following table. Then use the table to answer the questions:X
 
-If activity X is increased from 3 to 4 units, total benefit ___________ by $_________.

Accepted Answer

The answer of Fill in the blanks in the following...

Question 15

Fill in the blanks in the following table. Then use the table to answer the questions:X
 
-If X is increased from 3 to 4 units, total cost ___________ by $_________.

Accepted Answer

The answer of Fill in the blanks in the following...

Question 16

Fill in the blanks in the following table. Then use the table to answer the questions:X
 
-If X is decreased from 6 to 5 units, total benefit ___________ by $_________, and total cost ___________ by $_________. Thus, net benefit _____________.

Accepted Answer

The answer of Fill in the blanks in the following...

Question 17

Fill in the blanks in the following table. Then use the table to answer the questions:X
 
-The optimal level of activity is ___ units of activity X, and net benefit at the optimal level of X is $____________.

Accepted Answer

The answer of Fill in the blanks in the following...

Question 18

Activity A has the following marginal (MB) and marginal cost (MC) functions: MB = 2,500 - 20A MC = 500 + 30A where MB and MC are measured in dollars. -The 10^th unit of the activity increases total benefit by $_________ and increases total cost by $_________. Since marginal benefit is _________ (greater, less) than marginal cost, adding the 10^th unit of activity _________ (increases, decreases) net benefit by $_________.

Accepted Answer

The answer of Activity A has the following marginal (MB)...

Question 19

Activity A has the following marginal (MB) and marginal cost (MC) functions: MB = 2,500 - 20A MC = 500 + 30A where MB and MC are measured in dollars. -The 50^th unit of the activity increases total benefit by $_________ and increases total cost by $_________. Since marginal benefit is _________ (greater, less) than marginal cost, subtracting the 50^th unit of activity _________ (increases, decreases) net benefit by $_________.

Accepted Answer

The answer of Activity A has the following marginal (MB)...

Question 20

Activity A has the following marginal (MB) and marginal cost (MC) functions: MB = 2,500 - 20A MC = 500 + 30A where MB and MC are measured in dollars. -The optimal level of the activity is ________ units. At the optimal level of activity, marginal benefit is $_________ and marginal cost is $__________. The total benefit (TB) and total cost (TC) functions for the activity are: TB = 2,500A -10A² TC = 500A + 15A² where TB and TC are measured in dollars.

Accepted Answer

The answer of Activity A has the following marginal (MB)...

Quiz 3: Marginal Analysis for Optimal Decision Making

In a constrained maximization problem with two activities, A and B, the highest level of benefits obtainable at a given level of cost is achieved when ___ equals and the constraint is met.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The optimal level of A is _____ units at which MB = _ and MC = ________.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 800^th unit of A increases total benefit by $_____ and total cost by $_ thereby _______ net benefit by $.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 1,400^th unit of A increases total benefit by $ and total cost by $ thereby _______ net benefit by $.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -Net benefit is maximized when _____ units of A are chosen; marginal benefit is $_ and marginal cost is $_____.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -If 300 units of A are chosen, net benefit will increase by $_ if one _ unit of A is used.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -If 100 units of A are chosen, net benefit will increase by $_ if one _ unit of A is chosen.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If activity X is increased from 3 to 4 units, total benefit ___ by $_.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If X is increased from 3 to 4 units, total cost ___ by $_.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If X is decreased from 6 to 5 units, total benefit _______ by $_, and total cost ___ by $_. Thus, net benefit _________.

Fill in the blanks in the following table. Then use the table to answer the questions:X -The optimal level of activity is _ units of activity X, and net benefit at the optimal level of X is $__________.

Quiz 3: Marginal Analysis for Optimal Decision Making

In a constrained maximization problem with two activities, A and B, the highest level of benefits obtainable at a given level of cost is achieved when _______________ equals ____________ and the constraint is met.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The optimal level of A is _________ units at which MB = _________ and MC = ____________.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 800th unit of A increases total benefit by $_________ and total cost by $_________ thereby _____________________ net benefit by $__________.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 1,400th unit of A increases total benefit by $______ and total cost by $______ thereby _____________________ net benefit by $__________.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -Net benefit is maximized when _________ units of A are chosen; marginal benefit is $_________ and marginal cost is $_________.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -If 300 units of A are chosen, net benefit will increase by $_________ if one _________ unit of A is used.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -If 100 units of A are chosen, net benefit will increase by $_________ if one _________ unit of A is chosen.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If activity X is increased from 3 to 4 units, total benefit ___________ by $_________.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If X is increased from 3 to 4 units, total cost ___________ by $_________.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If X is decreased from 6 to 5 units, total benefit ___________ by $_________, and total cost ___________ by $_________. Thus, net benefit _____________.

Fill in the blanks in the following table. Then use the table to answer the questions:X -The optimal level of activity is ___ units of activity X, and net benefit at the optimal level of X is $____________.

In a constrained maximization problem with two activities, A and B, the highest level of benefits obtainable at a given level of cost is achieved when ___ equals and the constraint is met.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The optimal level of A is _____ units at which MB = _ and MC = ________.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 800^th unit of A increases total benefit by $_____ and total cost by $_ thereby _______ net benefit by $.

The marginal benefit and marginal cost functions for activity A are MB = 100 - 0.04A MC = 28 + 0.02A -The 1,400^th unit of A increases total benefit by $ and total cost by $ thereby _______ net benefit by $.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -Net benefit is maximized when _____ units of A are chosen; marginal benefit is $_ and marginal cost is $_____.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -If 300 units of A are chosen, net benefit will increase by $_ if one _ unit of A is used.

Use the following graph showing the marginal benefit and marginal cost curves for activity A to answer the following questions. -If 100 units of A are chosen, net benefit will increase by $_ if one _ unit of A is chosen.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If activity X is increased from 3 to 4 units, total benefit ___ by $_.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If X is increased from 3 to 4 units, total cost ___ by $_.

Fill in the blanks in the following table. Then use the table to answer the questions:X -If X is decreased from 6 to 5 units, total benefit _______ by $_, and total cost ___ by $_. Thus, net benefit _________.

Fill in the blanks in the following table. Then use the table to answer the questions:X -The optimal level of activity is _ units of activity X, and net benefit at the optimal level of X is $__________.