The values that belong in the blanks a – f in the figure on the
Question # 00101697
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Updated on: 09/09/2015 09:07 PM Due on: 10/09/2015

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, MB, MC,
NB) rises.
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, MB, MC,
NB) rises.

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Solution: The values that belong in the blanks a – f in the figure on the