Reference no: EM13963169

Question 1

Nonvalue-maximizing behavior is most common:

a. in vigorously competitive markets.

b. When shareholders are poorly informed.

c.when managers own a significant ownership interest.

d.in the production of goods rather than services.

Question 2

Managerial economics cannot be used to identify:

a. how macroeconomic forces affect the organization.

b. goals of the organization.

c. Ways to efficiently achieve the organization's goals.

d. microeconomic consequences of managerial behavior.

Question 3

Business profit is

The residual of sales revenue minus the explicit accounting costs of doing business.

a. a normal rate of return.

b. economic profit.

c. the return on stockholder's equity.

Question 4

Monopoly exploitation is reduced by regulation that:

a. enhances product-market competition.

b. increases the bargaining power of workers.

c. increases the bargaining power of employers

d. restricts output.

Question 5

The value of the firm is equal to:

a. the present value of tangible assets

b. the present value of all future revenues

c. the present value of all future cash flows.

d. current revenues less current costs.

Question 6

Economic profit equals:

a. normal profits plus opportunity costs.

b. business profits minus implicit costs.

c. business profits plus implicit costs.

d. normal profits minus opportunity costs.

Question 7

An equation is:

a. an analytical expression of functional relationships.

b. a visual representation of data.

c. a table of electronically stored data.

d. a list of economic data.

Question 8

The breakeven level of output occurs where:

a. marginal cost equals average costs.

b. marginal profit equals average costs.

c. total profit equals zero

d. marginal costs equals marginal revenue.

Question 9

Inflation is:

a. a line that touches but does not intersect a given curve.

b. a point of maximum slope.

c. a measure of the steepness of a line.

d. an activity level that generates highest profit.

Question 10

If P = $ 1,000 - 4Q:

a. MR = $ 1,000 - 4Q.

b. MR = $1000 - 8Q.

c. MR = $1,000Q - $4.

d. MR = $250 - $.25P

Question 11

Total cost minimization occurs at the point where:

a. MC=0.

b. MC=AC

c. AC=0

d. Q=0

Question 12

At the profit-maximizing level of output:

a. Marginal profit equals zero

b. marginal profit is less than average profit.

c. marginal profit exceeds average profit.

d. marginal cost equals average cost,