# IM02 - Chapter 2 ECONOMIC OPTIMIZATION QUESTIONS ANSWERS...

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12 Instructor’s Manual to accompany Managerial Economics, 10e Q2.3 Describe the relation between totals and marginals, and explain why the total is maximized when the marginal is set equal to zero. Q2.3 ANSWER A total reflects the sum or whole of an important economic variable. The marginal is the change in the total for a one-unit expansion in the activity level. Just as there is this simple arithmetic relation between totals and marginals, so too there is a corresponding geometric relation.
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## This note was uploaded on 04/02/2010 for the course ECON 305 taught by Professor Jung during the Spring '10 term at Ohio State.

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IM02 - Chapter 2 ECONOMIC OPTIMIZATION QUESTIONS ANSWERS...

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