Property owners move scarce resources towards the production of goods most valued by society because
Correct answer(s):
- Consumers demand inexpensive goods and services
Subject
Managerial Economics
Practice related MCQ quizzes and improve step by step.
Quizzes in Managerial Economics
New firms have incentive to enter an industry when there is
Correct answer(s):
- Positive economic profits
If the interest rate is 5% and cash flows are $3,000 at the end of year one and $5,000 at the end of year two, then the present value of these cash flows is
Correct answer(s):
- $7,392.29
“Our marginal revenue is greater than our marginal cost at the current production level.” This statement indicates that the firm
Correct answer(s):
- Should increase the quantity produced to increase profits
Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account
Correct answer(s):
- Both explicit and implicit costs
Marginal benefit refers to:
Correct answer(s):
- The additional benefits that arise by using an additional unit of the managerial control variables
Maximizing the present value of all future profits is the same as maximizing current profits if the growth rate in profits is:
Correct answer(s):
- Less than the interest rate
Suppose the growth rate of the firm’s profit is 5%, the interest rate is 6%, and the current profits of the firm are 100 million dollars. What is the value of the firm?
Correct answer(s):
- $10,600 million
. Suppose the growth rate of the firm’s profit is 5%, the interest rate is 6%, and the current profits of the firm are 80 million dollars: What is the value of the firm?
Correct answer(s):
- $8,480 million
Which is the correct statement about the relationship between government and the market?
Correct answer(s):
- Government often plays a role in disciplining the market process
Because of producer-producer rivalry, the price will tend to:
Correct answer(s):
- Be driven to a lower price
Producer-producer rivalry functions:
Correct answer(s):
- Only when multiple sellers for a product compete in the market
Consumer-consumer rivalry arises because of:
Correct answer(s):
- The scarcity of goods available
Consumer-consumer rivalry:
Correct answer(s):
- Reduces the negotiating power of consumers in the market place
Trade will take place:
Correct answer(s):
- If the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good
Consumer-producer rivalry occurs because of:
Correct answer(s):
- The competing interests of consumers and producers
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