Questions for Critical Thinking

Questions for Critical Thinking QUESTIONS FOR CRITICAL THINKING 1 From the end-of-chapter discussion questions (DQ) and problems (P) Salvatore Chapter 1: a.    Discussion Questions: 9. b.    Problems: 6, 15, and spreadsheet problem (p. 39) Note: 1.    P15(d): Compare the present value of economic profit in each of the next three years and the loss of $50,000 in the third year using 15% as the discount rate. 2.    The spreadsheet problem (b): Calculate a mean, …. to statistically describe the data of both variables, Time and Age. Froeb et al. Chapter 3: a.    Individual problems: 3-1 and 3-3. Salvatore Chapter 3: a.    Discussion Questions: 9. b.    Problems: 1(a), 7, and 9. Note: 1.    DQ9: Does maximum sales (revenue) equal maximum profit (see figure 3-4)? 2.    Revised P1(a): Derive the total-revenue, average-revenue, and marginal-revenue schedules from Q = 0 to Q = 4 by 1s. Average revenue (AR) = total revenue (TR)/Q Marginal revenue (MR) = change in total revenue/change in Q For example: Q    TR    AR    MR 2    14    7 (=14/2) 3    18    6 (=18/3)    4 (=(18-14)/(3-2) 3.    Revised P9: With the total-revenue schedule of Problem 1 and the total-cost schedule of Problem 7, show the profit-maximizing level of output (profit=TR-TC). Froeb et al. Chapter 4: a.    Individual problems: 4-5 and 4-6. Salvatore Chapter 1 Spreadsheet Problem Number    Time    Age 1    8.2    14 2    7.5    16 3    9.6    12 4    12.1    12 5    10.2    13 6    8.3    14 7    7.4    18 8    8.1    17 9    9.6    14 10    11.2    13 mean    9.2 median    9.0 mode    9.6 variance    2.5 s.d.    1.6 coefficient of variance    0.2 covariance    -2.4