Fill in the blanks below. In an unconstrained maximization problem: a. An activity should be increased if___________
Question:
Fill in the blanks below. In an unconstrained maximization problem:
a. An activity should be increased if___________ exceeds ___________.
b. An activity should be decreased if___________ exceeds___________.
c. The optimal level of activity occurs at the activity level for which___________ equals___________.
d. At the optimal level of activity___________, is maximized, and the slope of___________ equals the slope of___________.
e. If total cost is falling faster than total benefit is falling, the activity should be ___________.
f. If total benefit is rising at the same rate that total cost is rising, the decision maker should ___________.
g. If net benefit is rising, then total benefit must be rising at a rate___________ (greater than, less than, equal to) the rate at which total cost is ___________(rising, falling).
Step by Step Answer:
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice