6115pq4 - Practice Quiz Chapter 4 1 A firm will maximize...

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Practice Quiz – Chapter 4 1. A firm will maximize profit by producing that level of output at which a. the additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount. b. the additional revenue from the last unit sold equals the additional cost of the last unit. c. total revenue exceeds total cost by the largest amount. d. total revenue equals total cost. e. both b and c 2. For an unconstrained maximization problem a. the decision maker seeks to maximize net benefits. b. the decision maker seeks to maximize total benefits. c. the decision maker does not take cost into account because there is no constraint. d. the decision maker does not take the objective function into account because there is no constraint. e. none of the above 3. For a constrained minimization problem, the decision maker a. is constrained by the specific amount of total benefits. b. is constrained by the choice set of values for the activities. c. seeks to minimize the cost of achieving a specific goal. d.
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This note was uploaded on 09/18/2011 for the course ECO 6115 taught by Professor Staff during the Spring '08 term at University of Central Florida.

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6115pq4 - Practice Quiz Chapter 4 1 A firm will maximize...

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