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Which of the following is not the source of rivalry that exists in economic transactions?
Correct answer(s):
- Government-producer rivalry
Incentive plans imply:
Correct answer(s):
- If managers put forth little effort, they receive little pay; if they put forth much effort and hence generate many sales, they receive a lot of pay
When MB = 300 – 12Y and TC = 12Y + 108, the optimal level of Y is:
Correct answer(s):
- 24
Which of the following is the incorrect statement?
Correct answer(s):
- The difference in the slope of the total benefit curve and the total cost curve is maximized at the optimal level of Q
Maximizing total benefits is equivalent to maximizing net benefits if and only if there are:
Correct answer(s):
- No costs associated with achieving more benefits
In order to maximize net benefits, the managerial control variable should be used up to the point where:
Correct answer(s):
- Net marginal benefits equal zero
If marginal costs exceed marginal benefits, then:
Correct answer(s):
- The firm should decrease its production level
If marginal benefits exceed marginal costs, it is profitable to:
Correct answer(s):
- Increase Q
The optimal amount of studying is determined by comparing:
Correct answer(s):
- Marginal benefit and the marginal cost of studying
Marginal benefits are the:
Correct answer(s):
- Incremental benefits of a decision
The value of the firm is the:
Correct answer(s):
- Present discounted value of all future profits
To an economist, maximizing profit is:
Correct answer(s):
- Maximizing the value of the firm
The higher the interest rate, the greater the
Correct answer(s):
- None of the statements associated with this question are correct
As the interest rate increases, the opportunity cost of waiting to receive a future amount:
Correct answer(s):
- Increases
If the interest rate is 5%, $10 received at the end of 7 years is worth how much today?
Correct answer(s):
- 100/(1 + 0.05)7
If the annual interest rate is 0%, the present value of receiving $1.10 in the next year is:
Correct answer(s):
- $1.10
What is the main role of economic profits?
Correct answer(s):
- To signal where resources are most highly valued
Which of the following is incorrect?
Correct answer(s):
- Managers should only be interested in accounting profits
Which of the following is (are) true?
Correct answer(s):
- All of the statements associated with this question are correct
Which of the following is the main goal of a continuing company?
Correct answer(s):
- To maximize the value of the firm