Chapter 3--decision making
Chapter19-Decision-MakingUnderRisk
Chapter 19
More on Variation and Decision Making Under Risk
19-1
© 2005 by McGraw-Hill, New York, N.Y All Rights Reserved
LEARNING OBJECTIVES
1. Certainty and risk
Outcomes – known Termed a deterministic analysis Parameters are estimated with certainty
Decision Making under Risk
Inputs are viewed as uncertain, and element of chance is considered
P(Xi) = probabilБайду номын сангаасty that X = Xi
Cumulative Distribution (cdf)
Accumulation of probability over all values of a variable up to and including a specified value
19-7
© 2005 by McGraw-Hill, New York, N.Y All Rights Reserved
Distributions - Continuous Variables
Probability Distribution (pdf)
A function that describes how probability is distributed over the different values of a variable
第五章 管理决策
理性决策(Rational decision making)
理性假定： 理性假定： • 问题是清楚的和不模糊的 • 目标是单一的和清楚定义的 • 所有方案和结果都是已知的 • 偏好是清晰、不变和稳定的 偏好是清晰、 • 不存在时间和成本约束 • 最终选择将使回报最大化
• Acer • Compaq • Gateway • HP • NEC • Sony • IBM • Toshiba 评价等级： 1-10
分析 备选 方案
• Acer 206 • Compaq 234 • Gateway 281 • HP 237 • NEC 256 • Sony 245 • IBM 288 • Toshiba 250
理性 决策
前提条件： 前提条件： • 问题是简单的 • 目标是清楚的 • 方案数量有限 • 时间压力不大 • 寻找和评估方案成本低 • 组织文化支持创新冒险
Chapter 5 Management Decision
17
有限理性(Bounded rationality)
•
有限理性是指管理者由于个人处理信息能力的限制，其决 策行为只是在简单的决策过程中才表现出理性来。 由于管理者不可能分析所有决策方案的所有信息，所以， 他们只是制定“满意的”、而不是使目标最大化的决策。 决策还可能受到组织文化、内部政治、权力关系、“承诺 升级”等因素的强烈影响。
Chapter 5 Management Decision
11
长期决策和短期决策
•
•
长期决策是有关组织今后发展方向的长远性、全 局性的重大决策。如投资方向选择、人力资源开 发、生产流水线设备进口等。 短期决策则是实现长期战略目标而采取的短期策 略手段，如日常营销决策、物资储备决策等。
现代管理学(英文) 教学课件Chapter 6 DECISION MAKING：THE ESSENCE OF THE MANAGER’S JOB
Learning Objectives (cont.)
You should learn to: – Identify the two types of decision problems and the two types of decisions that are used to solve them – Differentiate the decision conditions of certainty, risk, and uncertainty – Describe the different decision-making styles
© Prentice Hall, 2002
6-3
Decision Making
Decisions – choices from two or more alternatives – all organizational members make decisions Decision-Making Process – a comprehensive, 8-step process – Step 1 - Identifying a Problem • problem - discrepancy between an existing and a desired state of affairs – must be such that it exerts pressure to act – manager is unlikely to characterize a situation as a problem unless s/he has resources necessary to act
© Prentice Hall, 2002 6-6
经济博弈论Chapter03_331007283
描求扩证序境。
of play.参无论何时采取行动，参与者都需要考虑他们当前的行动会如何影响未来的行动，包括对手和博它动，指出了博弈的所有可能结果。
决所有的连续决策点。
decision maker in a 博策树。
博节分每一分支都从博弈树上的一个决策点指向另一个决策点或终结点。
terminal node.在一个分支；不过，仅允许有一个分支指向任何一个决将引收益。
终结点并不是所有博弈必需的；一些博弈理论上可以永远进行下去on forever我参Anode is called a 参安均会发生什么？一个名叫卡门的少女正在决定是否要吸烟。
A teenager named Carmen is deciding whether to smoke.首如不一带给她不同的感受和收益。
taste, as well as different payoffs.单门分析一开始，考虑与终结点直接相连的那些行动点。
Start analysis by considering those action nodes that lead directly to terminal nodes.在利在通沿着贯穿整个博弈树的标出的唯一路径，就知道了当所有参与者在正确预测了所有的未来后果下做出最优选择时，这当由The outcome that arises from playing these在在会，甚至根本就没出现！但是，它的可能的出现和潜在的策略在决定今日卡门的招术时发挥了作用。
三每捐但为的所有结果进行赋值（排序）。
可3不多少种？如我均参不However, the equilibrium path of play is complete specification of the rollback equilibrium.它反略得到的。
艾尼塔根在街道花园博弈的反转均衡中，艾米丽得到了最好的结果（the opportunity to make the first move.先不后当这些操纵的招术就是Tactics for such manipulation are第第第第第第第三步：反转求解Step 3: Rollback第一它Slide 47一但一国然对实考有人拿出下。
会计英语财务会计
原始分类账簿
chronological record closing the accounts
序时记录
结账
closing entry 结账分录
credit balance 贷方余额
debit balance 借方余额
merchandise 商品；存货
miscellaneous expense (income)
杂项费用（收入）
money order 汇款单
NSF (no sufficient funds)
存款不足
notes received discounted
应收票据贴现
multiple-step approach
多步法
costs of goods sold 销货成本
operating income 营业收入
gross profit 毛利
sales returns and allowances
销售退回与折让
selling expenses 销售费用
out of service 报废
patent 专利权
productive capacity 生产能力
proportional allocation
按比例分配
research and development
研究与开发
revenue expenditure 收益性支出
坏账准备
allowance method 备抵法
allowance 备抵，减值准备
bad debt recovery 已确认坏账的收回
管理学(双语)chap1 Introduction to Management and Organi
• □我国国有企业80%以上的亏损企业是由于管 理不善所致。
2020/10/18
1-9
1. Who Are Managers?
• Manager – --someone who coordinates and oversees the works
台高筑，对下属公司的管理失控，陷入了全面危机。
•
1997年，国务院不得不对该公司进行全面清理整顿。一
个曾红极一时的国有大公司倒下了。
2020/10/18
1-7
•话题
你认为海尔与中联公司成败的 关键是什么？
2020/10/18
1-8
• □上述两个案例，一个由小到大，到强；一个 由大到乱，到衰，这一成一败说明了企业的成败 在于科学的管理，在于正确的战略。
• Informational - receiving, collecting, and disseminating information
• Decisional - revolve around making choices
– emphasis that managers give to the various roles seems to change with their organizational level
– First-line managers - at the lowest level of management and manage the work of nonmanagerial employees who are directly involved with the production or creation of the organization’s products
武汉理工大学：管理学原理 教学课件(英文)Chapter 5 Decisions-making
Types of Decisions
Programmed decision is a repetitive decision that can be handle by a routine approach. (Procedure, rule, policy) Non-programmed decision is a decision that must be custom-made to solve unique and non-recurring problems.
Availability heuristic
This is the tendency to base judgments on information that is readily available.
Representative heuristic
This is the tendency for people to base judgments of probability on things with which they are familiar.
Exhibit 5-4 Decision-Making
High Tolerance for Ambiguity Analytic Conceptual
Directive Low Ration
Behavioral
Intuitive Way of Thinking
The Advantages and Disadvantages of Group Decision Making
Evaluation of decision effectiveness
Implementation of the alternative
Selection of an alternative
Chapter06 Individual Decision Making
Three-Component Model of Creativity 创造力三要素模型
Expertise
CreativeThinking
Skills
Intrinsic Task
Motivation
How to improve creativity?
Organizational factors impede creativity
（增量原则）
Intuition
▪ Intuitive Decision Making直觉决策
➢ An unconscious process created out of distilled experience.从经验中提炼出决策的无意识过程
▪ Conditions Favoring Intuitive Decision Making
▪ 决策者最先评估显而易见的、熟悉的或 与现状相差不远的方案，得出的决策也 是满意决策而不是最优决策。
How Are Decisions Actually Made in Organizations
▪ How/Why problems are identified
➢ Visibility over importance of problem （易见性胜过重要性）
The Three Components of Creativity
Creativity（创造力） The ability to produce novel and useful ideas.
Three-Component Model of Creativity 创造力三要素模型 Proposition that individual creativity requires: expertise（专业能力） creative-thinking skills（创造性思维技能） and intrinsic task motivation（内在的任务动机）
墨菲物流学英文版第12版课后习题答案第3章
PART IIANSWERS TO END-OF-CHAPTER QUESTIONSCHAPTER 3: STRATEGIC AND FINANCIAL LOGISTICS3-1. Discuss the differences between corporate level, business unit level, and functional level strategies.Corporate-level strategy is focused on determining the goals for the company, the typesof businesses in which the company should compete, and the way the company will be managed. Strategy at a business unit level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers. The functional level strategies are related to business activities that support the achievement of the higher-level goals set by the business unit and corporation.3-2. Discuss the cost leadership, differentiation advantage, and focus strategies.A cost leadership strategy requires an organization to pursue activities that will enable it to become a low-cost producer in an industry for a given level of quality. A differentiation strategy entails an organization developing a product or service that offers unique attributes that customers value and perceive to be distinct from competitor offerings. A focus strategy concentrates an organization’s effort on a narrowly defined market to achieve either a cost leadership or differentiation strategy.3-3. What are the two key components of an income statement?Revenues and expenses are the two key components of an income statement. Revenues (sales) provide a dollar value of all the products and services an organization provides to its customers during a given period of time. Expenses (costs) provide a dollar value for the costs incurred in generating services during a given period of time.3-4. What are the three key components of a balance sheet?Assets, liabilities, and owners’ equity are the three key components of the balance sheet. Assets are what a company owns and come in two temporal forms: current assets and long-term assets. Liabilities are the financial obligations a company owes to another party. Liabilities also come in two temporal forms: current liabilities and long-term liabilities. Owners’ equity is the difference between what a company owns and what it owes at any particular time.3-5. What are the three key components of the statement of cash flows?The statement of cash flows contains information from the income statement and balance sheet, but is formatted to highlight the sources and uses of cash in an organization’s operations, and in investing and financing activities. Accounts payable, accounts receivable, revenue growth, gross margin, sales—general and administration, capital expenditures, and inventory are all areas that affect cash flows within an organization.3-6. What are the key components of the Strategic Profit Model? How can it be used to examine the effect of logistics decisions?Briefly, the Strategic Profit Model can be drilled down to Net Profit Margin x Asset Turnover = Return on Assets. Return on assets indicates what percentage of every dollar invested in the business is ultimately returned to the organization as profit. Net profit margin measures the proportion of each sales dollar that is kept as profit, and asset turnover measures the efficiency of the capital employed to generate sales. The Strategic Profit Model has the advantage of assisting logistics managers in the evaluation of cash flows and asset utilization decisions. Suppose, for example, that a logistics manager is able to eliminate some unnecessary inventory. This would reduce the value of current assets as well as total asset value. As a result, sales divided by total assets—asset turnover—would be higher, as would the organization’s return on assets.3-7. Discuss how logistics decisions affect net profit margin in an organization.The most relevant net profit margin considerations for logistics managers are sales, costs of goods sold, and total expenses. A primary influence of logistics activities on sales would be through the improvement of customer service. Logistics can impact costs of goods sold through procurement activities or through any logistics-related efficiency improvement that enables labor to be more productive. Expenses can include logistics-related activities such as transportation, warehousing, and inventory. A logistics decision to reduce the number of less-than-truckload shipments through a consolidation strategy would show up in the transportation costs category that is part of variable expenses.3-8. Discuss how logistics decisions affect asset turnover in an organization.Two examples involve inventory and accounts receivable. With respect to inventory, a retailer’s decision to move to a system of vendor-managed inventory, where a supplier of a product maintains control and ownership of an inventory item, can result in a significant reduction of the amount of inventory on an organization’s balance sheet. As for accounts receivable, a decision to invest in an EDI system that would increase invoice accuracy should enable customer payments to be received in a more timely fashion.3-9. D iscuss some ways that inventory can be reduced on a firm’s balance sheet.A decision by a retailer to move to a system of vendor-managed inventory where a supplier of a product maintains control and ownership over an inventory item can result in a significant reduction of the amount of inventory on an organization’s balance sheet. Similarly, the use of premium transportation may also enable a firm to reduce lead time and ultimately reduce pipeline inventory that would show up on the balance sheet.3-10. How does logistics strategy connect to overall corporate strategy? Is it a one-way or two-way connection?While the corporate level strategy ultimately sets the goals for the logistics strategy, the functional expertise that exists in the organization will necessarily influence the corporate strategy formulation. The strategic issues at this level are related to business activities that support the achievement of the higher-level goals set by the business unit and corporation. This hierarch of strategy entails the functional units of an organization providing input into the other levels of strategy formulation. This input could take the form of information on the resources and capabilities available to the organization. After the corporate level and business unit strategies are developed, the functional units must translate these strategies into discrete action plans they must accomplish for the higher-level strategies to succeed.Logistics strategy decisions involve issues such as the number and location of warehouses, the selection of appropriate transportation modes, the deployment of inventory, and investments in technology that support logistics activities. In addition to being influenced by the goals of the corporate and business unit strategies, logistics strategy is directly influenced by strategic decisions in the functional areas of marketing and manufacturing. The ability of the logistics function to ultimately influence the overall financial success of an organization is based on the ability of logistics managers to develop and implement strategies that are aligned with the overall corporate strategy. An appreciation for this interconnectedness and need for alignment of strategies is important for every logistics manager.3-11 What are the three primary areas where the Sarbanes-Oxley Act (SOX) has implications for logistics managers?Three primary areas where SOX has implications for logistics managers are internal controls, off balance sheet obligations, and timely reporting of material events. In terms of internal control, timely and accurate accounting of inventory is expected. With respect to off balance sheet obligations, compliance with SOX can involve providing transparency to external relationships with suppliers to manage inventory and/or purchasing agreements. Finally, timely reporting of material events involves the need to provide visibility of late supplier deliveries and/or the inability of suppliers to provide the products or services that are expected to drive revenue for the organization.3-12. Most managers believe that although it is possible to connect logistics decisions to costs, the connection to revenue enhancement is difficult to impossible. Provide an example of how logistics could improve sales.A decision to provide overnight delivery of service to e-commerce customers might have a positive influence on customer retention and sales.3-13. What are some common logistics measures in transportation, warehousing, and inventory management?Transportation:The major transportation measures focus on such things as labor, cost, equipment, energy, and transit time. Measurements in this area include items such as return on investment (investments in transportation equipment), outbound freight costs, transportation labor productivity, on-time deliveries, and in-transit damage frequency.Warehousing:The primary warehousing measures include such things as labor, cost, time, utilization, and administration. Some common measurements focused on warehouse activities include return on investment (investments in warehousing facilities or equipment), warehouse order processing costs, and warehouse labor productivity.Inventory Management:Inventory management measures tend to relate to the inventory service levels to customers as well as controlling inventory investment across an organization’s logistics system. Some common performance measures include obsolete inventory, inventory carrying cost, inventory turnover, and information availability.3-14. Do you think corporate cultures are relevant for designing a logistics measurement system? Why or why not?A re curring theme in the logistics research is that an organization’s logistics capabilit ies need to be directly connected to objective firm performance measures. In addition, this research stream asserts that logistics managers must continue to find ways to effectively communicate how these logistics capabilities provide value and ultimately support corporate strategy and success in financial terms. The ability of the logistics function to ultimately influence the overall financial success of an organization is based on the ability of logistics managers to develop and implement strategies that are aligned with the overall corporate strategy. This entails working directly with other functional areas such as marketing and manufacturing. This working relationship is directly influenced by the corporate culture that exists with a firm and thus holds the potential to help or hinder these alignment efforts.3-15. How do you measure gross margin return on inventory (GMROI)?Gross margin return on inventory is a common metric that is used by retailers and distributors to examine inventory performance based on margin and inventory turn. GMROI can be measured as (Gross Profit in Dollars/Sales in Dollars) x (Sales in Dollars/Average Inventory at Cost).3-16. Describe how logistics decisions might affect an organization’s cost of goods sold. Cost of goods sold includes all the costs of materials and labor directly involved in producing a product or delivering a service. A significant part of this expense category is the cost of materials that are used to make a product. As such, logistics can influence these costs through procurement activities (e.g., purchasing at volume discounts, reverse auctions) or through any logistics-related efficiency improvements that enable labor to be more productive (e.g., enhanced materials handling processes on a production line).3-17. Discuss the common types of information included in traditional logistics measurement systems.Logistics measurement systems have been traditionally designed to include information on five types of performance: asset management, cost, customer service, productivity, and logistics quality. Several measures are designed and implemented in each of these categories to manage logistics activities such as transportation, warehousing, and inventory management. Research suggests that leading-edge organizations are highly focused on performance measurement across these five areas and this serves as a platform on which competitive position, value-adding capabilities, and supply chain integration can grow.3-18. What are the major parts of a balanced scorecard? Why are these parts needed?The Balanced Scorecard (BSC) is made up of performance measures that address particular goals or capabilities in the areas of customers, internal business processes, learning and growth, and financial. This holistic approach is needed in order to force management to look beyond the traditional financial measures when conducting a strategic analysis.3-19. What are the steps for developing an effective logistics scorecard?To develop a n effective logistics scorecard, management first defines the organization’s vision and goals. Next, logistics strategies are designed to ensure achievement of this vision and goals. These strategies are then translated into specific tactical performance-enhancing activities, and, finally, appropriate measures are established for each activity.3-20. Identify some of the key considerations for a logistics manager who is designing and implementing a logistics measurement system in his or her organization.Some of the key things to consider when applying performance measures to logistics activities include:1.Determination of the key measures should be tailored to the individualorganization and level of decision making.2.Data collection and analysis are a major part of a performancemeasurement system in logistics. This complexity is increased in globalsettings.3.Behavioral issues should be considered when establishing andimplementing a system of logistics measures. Top management supportcan help tremendously in this area.4.Frequent communication and constant updating of the measures is anecessary condition for ensuring they are supporting the stated goals of theorganization.PART IIICASE SOLUTIONSCASE 3-1 BRANT FREEZER COMPANYQuestion 1: When comparing performance during the first five months of 2017 with performance in 2016, which warehouse shows the most improvement?St. Louis is the only one showing any improvement, using cost per unit shipped as the performance criterion. The cost for the first five months of 2016 was $9.97 and for the first five months of 2017, it fell to $9.07.Question 2: When comparing performance during the first five months of 2017 with performance in 2016, which warehouse shows the poorest change in performance?The worst change is the company’s own warehouse (located in Fargo), where costs per unit shipped increased 31%. Among the public warehouses used, Denver was the worst in terms of cost per unit handled. It is also the most expensive public warehouse that Brant uses.Question 3: When comparisons are made among all eight warehouses, which one do you think does the best job for the Brant Company? What criteria did you use? Why?Using the cost per unit handled criterion, St. Louis does the best job, closely followed by Chicago.Question 4: J. Q. is aggressive and is going to recommend that his father cancel the contract with one of the warehouses and give that business to a competing warehouse in the same city. J. Q. feels that when word of this gets around, the other warehouses they use will “shape up.” Which of the seven should J. Q. recommend be dropped? Why? Denver has the lowest volume and highest unit costs among all the public warehouses used. In addition, it had been closed by a strike which must have inconvenienced the Brant Company. It may be that the warehouse workers’ unions are strong in the Denver area. J. Q. should probably check out rates and productivity measures of other Denver warehouses before deciding to drop its current warehouse there.Question 5: The year 2017 is nearly half over. J. Q. is told to determine how much the firm is likely to spend for warehousing at each of the eight warehouses for the last six months of 2017. Do his work for him.There is not enough information to do a very precise forecast. J. Q. assumes that the proportion of costs occurring during the first five months of 2016 should be the same proportion in 2017.The projected costs in 2017 (column 3) are calculated by dividing the actual costs for the first five months of 2017 (column 2) by the percent of 2016 costs that occurred in the first five months (column 1). Fo r example, Atlanta’s actual 2017 costs of $40,228 divided by 2016’s 22.88% yields projected 2017 costs of approximately $175,822.The projected costs in the last six months of 2017 (column 4) are calculated by subtracting the actual costs for the first five months of 2017 (column 2) from 2017’s projected total costs (column 3). This gives us the projected costs for the last seven months of 2017. However, we are only interested in the last six months of 2017, so this number is multiplied by 6/7, or .857. Continuing with Atlanta, 2017’s projected total costs of $175,822 minus the first five months’ actual costs of $40,228 equals $135,394. Multiplying this by 6/7 yields projected six months’ costs of approximately $116,204. Question 6: When comparing the 2016 figures with the 2017 figures shown in the table, the amount budgeted for each warehouse in 2017 was greater than actual 2016 costs. How much of the increase is caused by increased volume of business (units shipped) and how much by inflation?There are several ways to approach this question. One involves calculating the volume difference and inflation difference for each warehouse, as follows:Volume difference = 2016 unit costs x (2017 units shipped – 2016 units shipped) Inflation difference = 2017 units shipped x (2017 unit costs – 2016 unit costs) For example, A tlanta’s volume and inflation differences are:Volume difference: $8.99 x (18,000 – 17,431) = $8.99 x 569 = $5,115Inflation difference: 18,000 x ($9.97 - $8.99) = 18,000 x $.98 = $17,640Question 7: Use the 2016 Income Statement and Balance Sheet to complete a Strategic Profit Model for J. Q.Sales =$4,003,450COGS = $937,000-Total Expenses = $2,486,167Gross Margin =$3,066,450Other Current Assets = $706,034Accounts Receivable= $355,450Inventory =$1,590,435Current Assets =$2,651,919Fixed Assets =$803,056Sales =$4,003,450Net Profit = $580,283Sales =$4,003,450Total Assets =$3,454,975Net Profit Margin =14.495%Asset Turnover =1.159ROA =16.796%+++-//Question 8: Holding all other information constant, what would be the effect on ROA for 2016 if warehousing costs declined 10% from 2016 levels?Given that warehousing costs were $735,982 for 2016, a 10% reduction would beapproximately $73,598. Thus, total expenses would decrease to $2,412,569 ($2,486,167 – $73,598), with the following SPM:Sales =$4,003,450COGS = $937,000-Total Expenses = $2,412,569Gross Margin =$3,066,450Other Current Assets = $706,034Accounts Receivable= $355,450Inventory =$1,590,435Current Assets =$2,651,919Fixed Assets =$803,056Sales =$4,003,450Net Profit = $580,283Sales =$4,003,450Total Assets =$3,454,975Net Profit Margin =16.333%Asset Turnover =1.159ROA =18.926%+++-//。
《跨境电商实用英语》全套教学课件Unit 3-Chapter 3 Product Description
PART 1
Warming-up
Task: Product description is important to a product. Look at the following product description, and discuss with a partner about what information we should include in the product description.
New Words
New Word
1
burst [bɜ:st] n.
a sudden flurry of activity
爆发
e.g.Ⅰ) After hearing the president’s speech, the applause burst from the crowd.
在听e relative words and expressions
4 Understand the procedure of making a good product description on Cross-
border E-commerce platforms
PART ONE
Burst sells are hot products, with high flow, high exposure, large orders and other characteristics. However, burst sells are not the source of profits for shops. Usually, the price of burst sells is low, and the direct impact is that the profit margins are small, even no profit margins. Thus, it is recommended that shops only set 1-2 burst sells per store. Create burst sells by reducing price, increasing discount rates, which will bring a lot of page views and orders in the short term for the shop, as well as promote the sale of other products.
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
Chapter 3 Student: ___________________________________________________________________________ 1. A firm will maximize profit by producing that level of output at which A. The additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount. B. The additional revenue from the last unit sold equals the additional cost of the last unit. C. Total revenue exceeds total cost by the largest amount. D. Total revenue equals total cost. E. Both b and c.
2. The function a decision maker seeks to maximize or minimize is the ________ function. A. Optimal. B. Decision-making. C. Objective. D. Marginal. E. None of the above.
3. When marginal cost is greater than marginal benefit at the current activity level, the decision maker can increase net benefit by decreasing the activity because. A. Total benefit will rise by more than total cost will rise. B. Marginal cost is rising faster than marginal benefit is falling. C. Net benefit is upward sloping at this point. D. Total cost will fall by more than total benefit will fall.
The next 3 questions refer to the following figure, which shows marginal benefits (MB) and marginal cost (MC) of activity A.
4. If the decision maker is choosing 200 units of activity A, A. This level maximizes net benefits. B. The activity could be reduced by one unit and net benefits will increase by $10. C. The activity could be increased by one unit and net benefits will increase by $10. D. The activity could be increased by one unit and net benefits will increase by $25. E. The activity could be reduced by one unit and net benefits will increase by $15.
5. If the decision maker is choosing 400 units of activity A, A. This level maximizes net benefits. B. The activity could be reduced by one unit and net benefits will increase by $10. C. The activity could be reduced by one unit and net benefits will rise by $25. D. The activity could be increased by one unit and net benefits will increase by $15. E. The activity could be reduced by one unit and net benefits would decrease by $10.
6. If the decision maker is choosing 300 units of activity A, A. This level maximizes net benefits. B. If the activity is increased by one unit, net benefits will increase by $20. C. If the activity is decreased by one unit, net benefits will decrease by $20. D. Both b and c. E. All of the above.
The next 3 questions refer to the following: A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
7. How should a manager with an annual budget of $140,000 allocate this budget in order to maximize the number of new products developed? A. Hire one engineer and five market researchers. B. Hire two engineers and three market researchers. C. Hire three engineers and one market researcher. D. Hire four engineers and four market researchers.
8. If the manager has an annual budget of $140,000 and currently is hiring two engineers and three market researchers, then. A. The last dollar spent on an engineer yielded more new products than the last dollar spent on a market researcher. B. The last dollar spent on a market researcher yielded more new products than the last dollar spent on an engineer. C. He is making the correct decision because engineers make more than market researchers. D. He is making the correct decision because the last market researcher hired was more productive than the last engineer hired.
9. How should a manager with an annual budget of $240,000 allocate this budget in order to maximize the number of new products developed? A. Hire three engineers and four market researchers. B. Hire three engineers and five market researchers. C. Hire five engineers and two market researchers. D. Hire four engineers and four market researchers.
10. A firm is deciding whether or not to close down its plant and modernize by installing new technology. Which of the following should management ignore when making the decision? A. How much the present plant cost. B. Cost of lost sales while the plant is closed. C. Added cost of the labor needed for the new plant. D. All of the above.
11. Which of the following statements represents bad decision making? A. I've already spent 3 years in the college so I can't drop out and go to work now. B. I've already paid for the ticket so I might as well stay to the end. C. I've put in so much time on this paper, I can't quit now. D. My stock has dropped $10 a share so I can't afford to sell it now. E. All of the above.