Chapter 3: Answers to Questions and Problems
Conceptual and Computational Questions
1.
a. When P = $12/unit, TR = ($12)(1) = $12/t.p. When P = $10, TR = ($10)(2) = $20, so
the price decrease results i
Chapter 8: Answers to Questions and Problems
1.
a.
b.
c.
d.
e.
f.
Q* = 7 units/time period.
The market price, $28 per unit.
$224/t.p., since ATC(Q*) x Q* = $32 x 7 = $224.
$98/t.p., since AVC(Q*) x Q*
Review of Mathematics for Managerial Economics
Percentages
= 0.6 250 = 150
1) What is 60% of 250?
2) 34 is what percent of 200?
%=
34
100 = 17%
200
3) 65 is what percent of 30?
%=
65
100 = 216.7%
30
Review of Mathematics for Managerial Economics
Show all steps in your work
Percentages
1) What is 60% of 250?
2) 34 is what percent of 200?
3) 65 is what percent of 30?
4) A company sold 1978.2 thousa
Introduction to Derivatives (Calculus)
What Are Derivatives?
Derivatives are ratios of changes in the magnitudes of variables that are related to each other. For example, if y
is a function of x, the
Chapter 5: Answers to Questions and Problems
1.
= 16 units of the
a. When K = 16 machines and L = 16 workers, Q = ( 16 ) ( 16 )
product per time period. Thus, APL(16) = Q/L = 16/16 = 1 unit/worker. If
Chapter 2: Answers to Questions and Problems
1. a. Since X is a normal good, an increase in consumer income will lead to an
increase in the demand for X (the demand curve for X will shift to the right
Chapter 1: Answers to Questions and Problems
2.
The maximum you would be willing to pay for this asset is the present value of its
income stream, which is
PV =
150, 000
150, 000
150, 000
150, 000
150,
ECON 301 Textbook Errors, Sections to be Skipped, and Exercises in Chapters 1 3 and 5 8
CHAP. 1 - The Fundamentals of Managerial Economics
Omit pages 8 14, but resume reading on p. 14 at Recognize the