Busi 301 Final Exam, TWU, Sun Ming Yoo, 2019 Fall Latest Verified & Updated Answers 2024.

Busi 301 Final Exam, TWU, Sun Ming Yoo, 2019 Fall Latest Verified & Updated Answers 2024. Marginal Benefit - CORRECT ANSWER Change in Benefit / Change in control variable Marginal Cost - CORRECT ANSWER Change in cost / Change in control variable Maximize net benefits - CORRECT ANSWER the control variable should be increased until MB = MC Production function - CORRECT ANSWER P = F[K,L] K units of capital and L units of labor. Marginal product of labour and capital - CORRECT ANSWER MP(L or K) = dQ / d(L or K) cost minimization - CORRECT ANSWER Marginal rate of technical substitution = w / r slope of isocost = slope of isoquant fixed cost/sunk-cost fallacy - CORRECT ANSWER letting irrelevant costs influence a decision. ex: overhead costs affecting product launch Hidden-cost fallacy - CORRECT ANSWER ignoring relevant costs when making a decision Economic Value added - CORRECT ANSWER net operating profit after taxes minus the cost of capital times the amount of capital utilized Average cost breakdown - CORRECT ANSWER = TC/Q = (FC+VC) / Q Marginal cost - CORRECT ANSWER is the additional cost to make and sell one additional unit of output (Q) = TC (1+Q) - TC (Q) Marginal Revenue - CORRECT ANSWER is the additional revenue gained from producing and selling one more unit. Cubic cost function - CORRECT ANSWER MC(Q) = a + 2bQ + 3cQ2 Cost complementarity - CORRECT ANSWER When the marginal cost of producing one type of output decreases when the output of another good is increased. Economies of scope - CORRECT ANSWER It is cheaper to produce the two outputs jointly instead of separately.