1. Explain and apply the economic perspective on business operations.
2. Define and apply the production function, average product, and marginal product.
3. Discuss the implications of the cost function, average cost, and marginal cost. Explain the difference between variable costs and fixed costs.
4. Define and apply the revenue function and marginal revenue.
5. Determine the profit-maximizing level of output.
6. A business has revenues of $40 million per month and costs of $28 million per month. Its monthly profits are _______ (LO4-1) a) $12 million. b) $36 million. c) $68 million. d) $144 million.
7. Some hospitals and private universities are nonprofit organizations. This means _______ a) their costs exceed their revenues. b) they do not seek to maximize their profits. c) they try to maximize revenues. d) they do not try to minimize costs.