Test for Relative Maximum and Minimum

question 41

Multiple Choice

Test for relative maximum and minimum. ​ ​

• A) relative maxima when x = 7, y = -8 and x = 7, y = 8; relative minima when x = -7, y = 8 and x = -7, y = -8
• B) relative maximum when x = 7, y = -8; relative minimum when x = -7, y = 8
• C) saddle point when x = -7, y = -8; relative minima when x = 0, y = 0 and x = -7, y = -8
• D) saddle points when x = 7, y = -8 and x = -7, y = 8; relative maximum when x = -7, y = -8; relative minimum when x = 7, y = 8
• E) saddle points when x = 7, y = 8 and x = -7, y = -8; relative maxima when x = 7, y = -8 and x = -7, y = 8

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Definitions:

Total Fixed Cost

Total Fixed Cost is the sum of all costs required to produce a product or service that does not change with the volume of output, such as rent, salaries, and equipment maintenance.

Profit-Maximizing Output

The point of production where a company reaches its maximum profit occurs when the marginal revenue is equal to the marginal cost.

Profit-Maximizing Output

The peak production level where a company can attain its maximum profit potential.

Economic Loss

Economic loss refers to a decrease in financial resources or potential wealth, often resulting from business operations, market conditions, or external factors impacting income or asset value.