08 Jun Question 1. Use the figure below to fill in the blanks in
Question
1. Use the figure below to fill in the blanks in the following questions.
a. The values that belong in the blanks a – f in the figure on the previous page are:
a. ______
d. ______
b. ______
e. ______
c. ______
f. ______
b. The optimal level of activity is ______ units of activity where ______ (TB, TC, MB, MC,
NB) reaches its maximum value of $_________.
c. Because TB is maximized at 100 units of activity, a line drawn tangent to the TB curve at
100 units of activity (not shown in the figure) has a slope of ______. NB at 100 units of
activity is $_________, which is identical to the value of NB at ______ units of activity.
Beyond 100 units, NB is _____________ (positive, rising, zero, negative).
d. At 25 units of activity, ______ (TB, TC, MB, MC, NB) is rising faster than ______ (TB,
TC, MB, MC, NB) is rising, and thus ______ (TB, TC, MB, MC, NB) is rising.
e. At 75 units of activity, decreasing the activity causes ______ (TB, TC, MB, MC, NB) to
fall faster than ______ (TB, TC, MB, MC, NB) falls, and thus ______ (TB, TC,
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