Managerial Economics MCQs 20 min Score: 0 Attempted: 0/20 Subscribe 1. What is managerial economics? (A) Study of managerial practices only (B) Study of macroeconomic policies (C) Analysis of market demand only (D) Application of economic theories to managerial decision-making 2. Which of the following is a microeconomic concept in managerial economics? (A) National income (B) Price elasticity of demand (C) Inflation rate (D) Gross domestic product (GDP) 3. What is the primary focus of managerial economics? (A) Analysis of market structures (B) Application of economic concepts to solve managerial problems (C) Study of economic theories (D) Macroeconomic policy evaluation 4. In managerial economics, what is the role of demand analysis? (A) Understanding consumer behavior and preferences (B) Assessing overall economic growth (C) Analyzing government policies (D) Evaluating inflation rates 5. Which of the following is a fundamental concept related to decision-making under scarcity? (A) Unemployment rate (B) Gross domestic product (GDP) (C) Marginal cost (D) Consumer price index (CPI) 6. What does the term “opportunity cost” mean? (A) The cost of producing an additional unit (B) The total cost of production (C) The cost of forgoing the next best alternative (D) The cost of fixed resources 7. Which of the following is a determinant of demand? (A) Production costs (B) Consumer income (C) Short-run profits (D) Government regulations 8. What is the role of supply analysis in managerial economics? (A) Analyzing consumer preferences (B) Assessing market competition (C) Evaluating macroeconomic policies (D) Understanding the factors influencing production costs 9. Which type of cost remains constant in total regardless of output level? (A) Fixed cost (B) Variable cost (C) Marginal cost (D) Average cost 10. What is the additional cost incurred by producing one more unit called? (A) Average cost (B) Total cost (C) Variable cost (D) Marginal cost 11. Which is a characteristic of a perfectly competitive market? (A) Many buyers and sellers (B) Price taker behavior (C) All of the above (D) Identical products 12. What is the responsiveness of quantity demanded to a change in price called? (A) Indifference curve (B) Marginal utility (C) Diminishing returns (D) Elasticity 13. For profit maximization, what is the relationship between MC and MR? (A) MC > MR (B) MC = MR (C) MC < MR (D) MC = 0 14. Which feature defines monopolistic competition? (A) One seller dominating the market (B) Identical products (C) Price taker behavior (D) Product differentiation 15. What is the situation called when average total cost is minimized? (A) Profit maximization (B) Cost minimization (C) Revenue maximization (D) Equilibrium output 16. What market structure has only one seller? (A) Perfect competition (B) Oligopoly (C) Monopoly (D) Monopolistic competition 17. Which market structure is dominated by a few large firms? (A) Oligopoly (B) Monopoly (C) Perfect competition (D) Monopolistic competition 18. What is the total output produced by a firm called? (A) Marginal output (B) Total utility (C) Total product (D) Marginal revenue 19. What is the additional satisfaction gained from consuming one more unit? (A) Marginal cost (B) Indifference curve (C) Diminishing returns (D) Marginal utility 20. What is the firm’s total revenue minus explicit and implicit costs called? (A) Economic profit (B) Accounting profit (C) Marginal profit (D) Gross profit