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Managerial economics combines an understanding of four areas. Which of the following is not one of these areas?

Select one:

a.Finance

b.Statistics

c.Marketing

d.Managerial accounting

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Which stage of change describes the state of companies that had a dominant place in the market years ago?

Select one:

a.Stage 4: Revenue plus

b.Stage 3: Revenue management

c.Stage 2: Cost management

d.Stage 1: Cost plus

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Which of the five forces relates to a company's ability to maintain profits in the industry and is contingent on the force of rivalry between companies in the same industry?

Select one:

a.Force 2: Power of input suppliers

b.Force 3: Power of buyers

c.Force 1: Entry

d.Force 4: Industry rivalry

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What is the most well-known form of profits?

Select one:

a.Financial

b.Managerial

c.Analytical

d.Accounting

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When a company needs to determine its breakdown in the market, its leaders consider which of the following questions?

Select one:

a.What is the segregation in the market?

b.What are the company's hiring and staffing needs?

c.How does the company produce its goods?

d.What type of product does the company produce?

Question6

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What is the primary goal of a company's private and public decisions?

Select one:

a.Increase profit.

b.Satisfy customers.

c.Decrease costs.

Question7

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Which of the following is not one of the six steps of decision making?

Select one:

a.Explore the alternatives.

b.Solve the problem.

c.Determine the objective.

d.Predict consequences.

Question8

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Based on the formula PV=FV/(1+i)^n, what is the present value of $500 in 20 years when the interest is 8%?

Select one:

a.$40

b.$107.27

c.$462.96

d.$6,250

Question9

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Which type of rivalry can direct market practice?

Select one:

a.Consumer-producer rivalry

b.Producer-producer rivalry

c.Consumer-consumer rivalry

Question10

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In marginal analysis, what does B(Q) signify?

Select one:

a.Costs

b.Profits

c.Units

d.Benefits

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What type of cost involves an evaluation of comparative advantages and disadvantages?

Select one:

a.Opportunity cost

b.Total cost

c.Variable cost

d.Fixed cost

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Short run is the period of time in which __________ elements of production exist.

Select one:

a.fixed

b.average

c.variable

d.marginal

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Average variable cost offers a degree of __________ costs per item.

Select one:

a.marginal

b.variable

c.fixed

d.total

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Which of the following costs are variable costs for a candy plant? (Select all that apply.)

Select one or more:

a.Electricity to power the candy manufacturing machines

b.Costs of material for wrapping

c.Expenses for an accountant to formulate the tax returns

d.Fees to design the candy wrappers

Question15

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Variable costs increase and decrease as output __________.

Select one:

a.decreases

b.increases

c.stays the same

d.fluctuates

Question16

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Which of the following does affect the own-price elasticity of a good?

Select one:

a.Expenditure share

b.Time

c.Available substitutes

d.All of the above

Question17

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Which of the following is not a linear role that affects demand?

Select one:

a.Expenses

b.Values

c.Revenue

Question18

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What is the adjustment in total revenue based on a variation in output?

Select one:

a.Total revenue

b.Marginal analysis

c.Marginal revenue

d.Profit analysis

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Which of the following is not a demand shifter?

Select one:

a.Advertising

b.Increase in profits

c.Consumer income

d.Population

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What is marginal revenue?

Select one:

a.The adjustment in total revenue based on a variation in output

b.The change in total cost as the quantity produced changes by one unit

c.The difference between the total cost of producing an item and the revenue earned by producing that additional item

Question21

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Customers will often buy an extra unit of a good if the price __________.

Select one:

a.decreases

b.increases

c.stays the same

Question22

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The theory of free entry and exit says that new companies can enter the market if they achieve __________.

Select one:

a.costs

b.profits

c.products

d.expenses

Question23

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Monopoly describes a situation in which a single company serves an entire __________.

Select one:

a.market

b.profit

c.product

d.supply

Question24

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Which of the following is not a primary element of perfect competition?

Select one:

a.No operation costs exist.

b.Consumers and suppliers have identical material.

c.No profits exist.

d.Every company in the market creates a similar product.

Question25

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Diseconomies of scale occur when long-run average __________ increase as output increases.

Select one:

a.expenses

b.costs

c.profits

d.inputs

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Monopolists lack unlimited __________.

Select one:

a.demand

b.supply

c.power

d.markets

Question27

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To sell more of its product, a company must __________ its price.

Select one:

a.charge back

b.increase

c.supplement

d.decrease

Question28

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To participate in capital plans, an organization must obtain __________.

Select one:

a.shares

b.funding

c.profits

d.supply

Question29

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The ability to invest in working capital is a(n) __________expenditure.

Select one:

a.income

b.supply

c.expense

d.cash

Question30

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Which of the following is not needed to participate in capital plans?

Select one:

a.Expenses

b.Dividend growth model

c.Debts

d.Equity

Question31

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Marginal regulation specifies that companies must participate in every project that has a(n) __________ that surpasses the marginal cost of capital.

Select one:

a.internal rate of return

b.profit

c.expense

d.capital

Question32

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What is the act of placing restrictions on the amount of new investments or projects a company undertakes?

Select one:

a.Capital rationing

b.Capital controlling

c.Capital budgeting

d.Capital revenue

Question33

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Which of the following is not a type of capital budgeting decision?

Select one:

a.Enhanced products

b.Lease or buy

c.Extension of amenities

d.Replacement standards

Question34

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Which of the following is not a source of business risk?

Select one:

a.Profit and loss

b.Economic condition

c.Competition and technological change

d.Cost and expenses

Question35

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If __________ is unknown, a potential for uncertainty in pricing will exist.

Select one:

a.supply

b.profit

c.demand

d.expense

Question36

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Which form of business risk might not continuously correspond with the inclusive economy?

Select one:

a.Economic conditions

b.Variations in categorical businesses

c.Competition and technological change

d.Changes in consumer preferences

Question37

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An easy way to eliminate uncertainty about the customers of a particular retail store is to __________ the number and variety of consumers who shop there.

Select one:

a.categorize

b.decrease

c.estimate

d.increase

Question38

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A(n) __________ is a variable that has an unknown value.

Select one:

a.allocated variable

b.random variable

c.binomial random variable

d.trinomial random variable

Question39

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In a fiscal or economic model, what are two important positions?

Select one:

a.Risk and possibilities

b.Risk and reward

c.Risk and uncertainty

d.Risk and replication

Question40

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Which type of shift refers to influences (other than price) that lead to a shift?

Select one:

a.Supply

b.Demand

c.Expense

d.Revenue

Question41

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A common misconception is that monopolies frequently generate large __________.

Select one:

a.gains

b.expenses

c.returns

d.losses

Question42

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When a company achieves total capacity utilization, __________ can increase.

Select one:

a.expenses

b.supply

c.sales

d.costs

Question43

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When pricing does not change, __________ decrease, which in turn affects __________.

Select one:

a.sales; revenues

b.revenues; sales

c.profits; sales

d.sales; profits

Question44

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In a company's economies of scale, the average __________ is based on the overall level of production.

Select one:

a.demand

b.expense

c.cost

d.profit

Question45

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As __________ reaches unit elasticity, the ideal markup reaches an infinite factor.

Select one:

a.demand

b.supply

c.profit

d.expense