Answer quiz

docx

School

Amity University *

*We aren’t endorsed by this school

Course

MGMT101

Subject

Economics

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by DukeSteelYak17

1. Answer: 22 Units The three-month moving average is calculated by taking the average of the demand for the last three months. In this case, (20 + 22 + 25) / 3 = 67 / 3 ≈ 22.33. Since demand is typically a whole number, you would round to the nearest whole number, which is 22. 2. Answer: Second and Third stages. The law of diminishing returns is associated with the second and third stages of production. In the initial stages, increasing inputs result in increased output, but eventually, the additional output diminishes. 3. Answer: Accuracy of Forecast Root Mean Square Error (RMSE) is a measure of the accuracy of a forecast. It represents the square root of the average of the squared differences between the forecasted values and the actual values. 4. Answer: The firm should continue at its original price of Rs. 750 The firm's fixed cost is not affected by the market conditions. If the firm reduces the price to match the cheaper imports, it may incur losses. It's generally not advisable to compete solely on price unless there are other strategic considerations. 5. Answer: Irregular Variation

Irregular variation (or random variation) does not follow a definite pattern and is unpredictable. It represents the random fluctuations in a time series that cannot be attributed to systematic factors like trend, seasonality, or cyclical variations. 6. Answer: The firm has a fixed scale of operation. In the short run, firms cannot easily change their scale of operation, i.e., they have fixed inputs. Short- run decisions are made with the understanding that certain factors, like plant capacity, cannot be altered. 7. Answer: All statements are correct Without specific statements to evaluate, it's not possible to determine which statements are correct. If all statements are indeed correct, then this option would be accurate. 8. Answer: A higher correction constant represents a lower influence of past data, and it's more suitable for a volatile industry. A higher smoothing constant in exponential smoothing gives more weight to recent observations, making the forecast more responsive to changes. In a volatile industry, recent data may be more indicative of future trends. 9. Answer: A higher correction constant represents a higher influence of past data, and it's more suitable for a volatile industry.

This statement is a repetition of the previous question but is phrased differently. The correct statement is the same as in question 8. 10. Answer: 4 Units The total product (TP) is the product of the average product (AP) and the number of units of labor. TP = AP * Number of Units of Labor. Here, TP = 2 * 2 = 4 units. 11. Answer: The firm can change its scale of operation. Long-run decisions involve the ability to change the scale of operation, adjust the level of fixed inputs, and potentially exit the business. 12. Answer: 400 Units The break-even point is where total revenue equals total cost. Break-even point (in units) = Fixed Cost / (Selling Price per Unit - Variable Cost per Unit) = 100,000 / (750 - 500) = 400 units. 13. Answer: All statements are correct.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

The second stage of production is characterized by increasing marginal returns, addition of more labor increasing output, and the total product increasing. 14. Answer: 25 Units The naïve method assumes that the demand for the next period is equal to the demand for the current period. Therefore, the demand forecast for the fourth month would be the same as the demand for the third month, which is 25 units. 15. Answer: The tangents to the total cost and the total revenue curve are perpendicular to each other at the maximum profit point. This statement is correct. At the profit-maximizing level of output, the marginal cost equals the marginal revenue, and the tangents to the total cost and total revenue curves are perpendicular. 16. Answer: Addition of more labor increases output. This statement is consistent with the law of diminishing returns, which states that in the short run, adding more of a variable input (like labor) to a fixed input (like capital) will initially increase output but at a decreasing rate. 17. Answer: 2 units

The production function Q = KL^2 implies that output (Q) is proportional to the square of the amount of capital (K) and is independent of the amount of labor (L). If Q = 8 when L = 2, then K = sqrt(8/2) = sqrt(4) = 2 units. 18. Answer: All statements are correct. R^2, or the coefficient of determination, is a measure of how well the independent variable (time in this case) explains the variability in the dependent variable (the time series). A higher R^2 indicates a better fit of the model to the data. 19. Answer: At 500 units, the firm would have its marginal cost equal to marginal Revenue. At the point where total revenue is maximized, marginal revenue equals marginal cost. This is the profit- maximizing condition. 20. Answer: All Statements are correct. The marginal revenue product of labor (MRPL) is indeed calculated as the product of the marginal productivity of labor (MPL) and the marginal revenue (MR). The firm should continue increasing labor as long as MRPL > marginal resource cost of labor. MRPL represents the additional revenue associated with employing one additional unit of labor.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Salmon Farming.edited.docx

IMG_1195.jpeg

Screen Shot 2023-12-02 at 3.14.19 PM.png

20231221_002831.jpg

takehome_exam.pdf

4.12 Exam Paart A.docx

A10F7FB3-CA9C-450B-86F4-F46567097B50

D6 Misleading graphs.docx

examen gestion de calidad segunda vuelta semana 2. 2.png

PATSON DAKA-D21040.docx

SMT 3.png

ACC 281 quiz 5-98.docx

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...

Economics

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:Cengage Learning

Microeconomic Theory

Economics

ISBN:9781337517942

Author:NICHOLSON

Publisher:Cengage

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Micro Economics For Today

Economics

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Cengage,

Economics For Today

Economics

ISBN:9781337613040

Author:Tucker

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning