Question 1

What is the main role of economic profits?

Accepted Answer

A) To signal where resources are most highly valued. 
B) To help firms cover their production costs. 
C) To help consumers cover their opportunity cost. 
D) None of the statements associated with this question are correct. 
A) To signal where resources are most highly valued. 
B) To help firms cover their production costs. 
C) To help consumers cover their opportunity cost. 
D) None of the statements associated with this question are correct.

Question 2

Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account

Accepted Answer

A) only explicit costs. 
B) only implicit costs. 
C) both explicit and implicit costs. 
D) both types of profits are always equal because they account for the same costs. 
A) only explicit costs. 
B) only implicit costs. 
C) both explicit and implicit costs. 
D) both types of profits are always equal because they account for the same costs.

Question 3

Basic principles that comprise good management include

Accepted Answer

A) identifying goals and constraints. 
B) recognizing the nature and importance of profits. 
C) understanding incentives. 
D) all of the statements associated with this question are correct. 
A) identifying goals and constraints. 
B) recognizing the nature and importance of profits. 
C) understanding incentives. 
D) all of the statements associated with this question are correct.

Question 4

-What is the marginal cost of producing the fifth unit?

Accepted Answer

A) 270. 
B) 110. 
C) 50. 
D) 0. 
A) 270. 
B) 110. 
C) 50. 
D) 0.

Question 5

The lower the interest rate:

Accepted Answer

A) the greater the present value of a future amount. 
B) the smaller the present value of a future amount. 
C) the greater the level of inflation. 
D) none of the statements associated with this question are correct. 
A) the greater the present value of a future amount. 
B) the smaller the present value of a future amount. 
C) the greater the level of inflation. 
D) none of the statements associated with this question are correct.

Question 6

You have just been hired as a consultant to help a firm to decide which of three options to take to maximize the value of the firm over the next three years.The following table shows year-end profits for each option.Interest rates are expected to be stable at 8 percent over the next three years.

Accepted Answer

@#IMG-DLM& a.Discuss the difference in the profits

Question 7

Given the cost function C(Y) = 6Y2, what is the marginal cost?

Accepted Answer

A) 6Y. 
B) Y2. 
C) 3Y. 
D) 12Y. 
A) 6Y. 
B) Y2. 
C) 3Y. 
D) 12Y.

Question 8

In 1995 a $50 million major renovation project of the 19-year-old Seattle Kingdome was completed nearly $18 million over the initial budget.Several million dollars in other expenses were incurred during the renovation phase, including payments to the Seattle Seahawks football team and the Mariners baseball team for revenue they lost by not being able to play in the Kingdome.If you were on the city council, what information would you have needed to determine whether the renovation project was a sound investment?

Accepted Answer

You need to obtain the information requi

Question 9

Under producer-producer rivalry, individual firms want to sell the product at the maximum price consumers will pay, but are unable to do this because of:

Accepted Answer

A) cost considerations. 
B) the scarcity of resources. 
C) competition among sellers. 
D) competition among buyers. 
A) cost considerations. 
B) the scarcity of resources. 
C) competition among sellers. 
D) competition among buyers.

Question 10

Scarce resources are ultimately allocated toward the production of goods most wanted by society because:

Accepted Answer

A) firms attempt to maximize profits. 
B) they are most efficiently utilized in these areas. 
C) consumers demand inexpensive goods and services. 
D) managers are benevolent. 
A) firms attempt to maximize profits. 
B) they are most efficiently utilized in these areas. 
C) consumers demand inexpensive goods and services. 
D) managers are benevolent.

Question 11

Total costs in the above table are

Accepted Answer

A) decreasing at a constant rate. 
B) decreasing at an decreasing rate. 
C) increasing at a constant rate. 
D) increasing at an increasing rate. 
A) decreasing at a constant rate. 
B) decreasing at an decreasing rate. 
C) increasing at a constant rate. 
D) increasing at an increasing rate.

Question 12

-What is the total benefit associated with producing four units of the control variable, Q (identify point A in the above table)?

Accepted Answer

A) 600. 
B) 2,600. 
C) 3,000. 
D) 3,400. 
A) 600. 
B) 2,600. 
C) 3,000. 
D) 3,400.

Question 13

-What is the level of net benefits when twenty units are produced?

Accepted Answer

A) -100. 
B) 80. 
C) 100. 
D) 10. 
A) -100. 
B) 80. 
C) 100. 
D) 10.

Question 14

-What is the marginal benefit associated with producing six units of the control variable, Q (identify point D in the above table)?

Accepted Answer

A) 600. 
B) 400. 
C) 200. 
D) 100. 
A) 600. 
B) 400. 
C) 200. 
D) 100.

Question 15

-At what level of output does marginal cost equal marginal revenue?

Accepted Answer

A) 10. 
B) 20. 
C) 30. 
D) 40. 
A) 10. 
B) 20. 
C) 30. 
D) 40.

Question 16

To an economist, maximizing profit is:

Accepted Answer

A) maximizing the value of the firm. 
B) maximizing the current year's profits. 
C) minimizing the permanent total costs. 
D) minimizing the future risks. 
A) maximizing the value of the firm. 
B) maximizing the current year's profits. 
C) minimizing the permanent total costs. 
D) minimizing the future risks.

Question 17

Which of the following is an implicit cost to a firm that produces a good or service?

Accepted Answer

A) labor costs. 
B) costs of operating production machinery. 
C) foregone profits of producing a different good or service. 
D) costs of renting or buying land for a production site. 
A) labor costs. 
B) costs of operating production machinery. 
C) foregone profits of producing a different good or service. 
D) costs of renting or buying land for a production site.

Question 18

Which of the following signals to the owners of scarce resources are the best uses of those resources?

Accepted Answer

A) profits of businesses. 
B) government regulations. 
C) economic indicators. 
D) the accounting cost of those resources. 
A) profits of businesses. 
B) government regulations. 
C) economic indicators. 
D) the accounting cost of those resources.

Question 19

A recent survey of new graduates in High Tech Cauldron Coalescence (HTCC) revealed that every graduate had at least two job offers and the average offer was $100,000 per year.With the release of this information, what do you expect to see happen to the number of HTCC majors? What do you expect to happen to salaries in the HTCC field in 10 years? Why?

Accepted Answer

Initially the number of people that majo

Question 20

The marginal benefit in the above table is

Accepted Answer

A) increasing at a constant rate. 
B) decreasing at a constant rate. 
C) increasing at a decreasing rate. 
D) decreasing at an increasing rate. 
A) increasing at a constant rate. 
B) decreasing at a constant rate. 
C) increasing at a decreasing rate. 
D) decreasing at an increasing rate.

What is the main role of economic profits?

Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account

Basic principles that comprise good management include

-What is the marginal cost of producing the fifth unit?

The lower the interest rate:

You have just been hired as a consultant to help a firm to decide which of three options to take to maximize the value of the firm over the next three years.The following table shows year-end profits for each option.Interest rates are expected to be stable at 8 percent over the next three years.

Given the cost function C(Y) = 6Y², what is the marginal cost?

Under producer-producer rivalry, individual firms want to sell the product at the maximum price consumers will pay, but are unable to do this because of:

Scarce resources are ultimately allocated toward the production of goods most wanted by society because:

Total costs in the above table are

-What is the total benefit associated with producing four units of the control variable, Q (identify point A in the above table)?

-What is the level of net benefits when twenty units are produced?

-What is the marginal benefit associated with producing six units of the control variable, Q (identify point D in the above table)?

-At what level of output does marginal cost equal marginal revenue?

To an economist, maximizing profit is:

Which of the following is an implicit cost to a firm that produces a good or service?

Which of the following signals to the owners of scarce resources are the best uses of those resources?

The marginal benefit in the above table is

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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Exam 1: The Fundamentals of Managerial Economics

What is the main role of economic profits?

Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account

Basic principles that comprise good management include

-What is the marginal cost of producing the fifth unit?

The lower the interest rate:

You have just been hired as a consultant to help a firm to decide which of three options to take to maximize the value of the firm over the next three years.The following table shows year-end profits for each option.Interest rates are expected to be stable at 8 percent over the next three years.

Given the cost function C(Y) = 6Y2, what is the marginal cost?

Under producer-producer rivalry, individual firms want to sell the product at the maximum price consumers will pay, but are unable to do this because of:

Scarce resources are ultimately allocated toward the production of goods most wanted by society because:

Total costs in the above table are

-What is the total benefit associated with producing four units of the control variable, Q (identify point A in the above table)?

-What is the level of net benefits when twenty units are produced?

-What is the marginal benefit associated with producing six units of the control variable, Q (identify point D in the above table)?

-At what level of output does marginal cost equal marginal revenue?

To an economist, maximizing profit is:

Which of the following is an implicit cost to a firm that produces a good or service?

Which of the following signals to the owners of scarce resources are the best uses of those resources?

The marginal benefit in the above table is

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

Given the cost function C(Y) = 6Y², what is the marginal cost?