What is managerial economics?
a. Study of managerial practices only
b. Application of economic theories to managerial decision-making
c. Analysis of market demand only
d. Study of macroeconomic policies
Answer: b. Application of economic theories to managerial decision-making
Which of the following is a microeconomic concept in managerial economics?
a. National income
b. Inflation rate
c. Price elasticity of demand
d. Gross domestic product (GDP)
Answer: c. Price elasticity of demand
What is the primary focus of managerial economics?
a. Analysis of market structures
b. Study of economic theories
c. Application of economic concepts to solve managerial problems
d. Macroeconomic policy evaluation
Answer: c. Application of economic concepts to solve managerial problems
In managerial economics, what is the role of demand analysis?
a. Assessing overall economic growth
b. Understanding consumer behavior and preferences
c. Analyzing government policies
d. Evaluating inflation rates
Answer: b. Understanding consumer behavior and preferences
Which of the following is a fundamental concept in managerial economics related to decision-making under scarcity?
a. Marginal cost
b. Gross domestic product (GDP)
c. Unemployment rate
d. Consumer price index (CPI)
Answer: a. Marginal cost
What does the term “opportunity cost” mean in managerial economics?
a. The cost of producing an additional unit
b. The cost of forgoing the next best alternative
c. The total cost of production
d. The cost of fixed resources
Answer: b. The cost of forgoing the next best alternative
Which of the following is a determinant of demand in managerial economics?
a. Production costs
b. Consumer income
c. Short-run profits
d. Government regulations
Answer: b. Consumer income
What is the role of supply analysis in managerial economics?
a. Analyzing consumer preferences
b. Understanding the factors influencing production costs
c. Evaluating macroeconomic policies
d. Assessing market competition
Answer: b. Understanding the factors influencing production costs
Which type of cost remains constant on a per-unit basis but varies in total with the level of output?
a. Fixed cost
b. Variable cost
c. Marginal cost
d. Average cost
Answer: a. Fixed cost
In managerial economics, what is the term for the additional cost incurred by producing one more unit of a good or service?
a. Average cost
b. Total cost
c. Marginal cost
d. Variable cost
Answer: c. Marginal cost
Which of the following is a characteristic of a perfectly competitive market in managerial economics?
a. Many buyers and sellers
b. Limited product differentiation
c. Price taker behavior
d. All of the above
Answer: d. All of the above
What is the term for the responsiveness of quantity demanded to a change in price?
a. Elasticity
b. Marginal utility
c. Diminishing returns
d. Indifference curve
Answer: a. Elasticity
In managerial economics, what is the relationship between marginal cost (MC) and marginal revenue (MR) for profit maximization?
a. MC = MR
b. MC > MR
c. MC < MR
d. MC = 0
Answer: a. MC = MR
Which of the following is a characteristic of monopolistic competition in managerial economics?
a. One seller dominating the market
b. Identical products
c. Price taker behavior
d. Product differentiation
Answer: d. Product differentiation
What is the term for a situation where a firm’s average total cost is minimized, resulting in the most efficient level of production?
a. Profit maximization
b. Revenue maximization
c. Cost minimization
d. Equilibrium output
Answer: c. Cost minimization
What is the term for a market structure where there is only one seller and has significant control over price?
a. Monopoly
b. Oligopoly
c. Perfect competition
d. Monopolistic competition
Answer: a. Monopoly
Which of the following is a characteristic of oligopoly in managerial economics?
a. Many buyers and sellers
b. Price taker behavior
c. Few dominant firms
d. Identical products
Answer: c. Few dominant firms
What is the term for a situation where the production of one good requires sacrificing the production of another?
a. Opportunity cost
b. Marginal cost
c. Diminishing returns
d. Indifference curve
Answer: a. Opportunity cost
In managerial economics, what is the term for the total output produced by a firm at a particular level of input?
a. Marginal output
b. Total utility
c. Marginal revenue
d. Total product
Answer: d. Total product
What is the term for the additional satisfaction or pleasure derived from consuming one more unit of a good or service?
a. Marginal cost
b. Marginal utility
c. Diminishing returns
d. Indifference curve
Answer: b. Marginal utility
Which market structure is characterized by a few large firms dominating the market?
a. Perfect competition
b. Monopoly
c. Oligopoly
d. Monopolistic competition
Answer: c. Oligopoly
What is the term for a firm’s total revenue minus its explicit costs?
a. Accounting profit
b. Economic profit
c. Marginal profit
d. Gross profit
Answer: b. Economic profit
In managerial economics, what is the term for a cost that does not vary with the level of output?
a. Variable cost
b. Marginal cost
c. Fixed cost
d. Average cost
Answer: c. Fixed cost
Which of the following is a characteristic of a monopoly in managerial economics?
a. Many sellers
b. Price taker behavior
c. Identical products
d. Single seller dominating the market
Answer: d. Single seller dominating the market
What is the term for a situation where the firm produces the quantity of output where marginal cost equals marginal revenue?
a. Profit maximization
b. Revenue maximization
c. Cost minimization
d. Equilibrium output
Answer: a. Profit maximization
Which of the following is a characteristic of monopolistic competition in managerial economics?
a. One seller dominating the market
b. Identical products
c. Price taker behavior
d. Many sellers with differentiated products
Answer: d. Many sellers with differentiated products
In managerial economics, what is the term for a situation where a firm is neither making a profit nor incurring a loss?
a. Profit maximization
b. Revenue maximization
c. Break-even point
d. Equilibrium output
Answer: c. Break-even point
What is the term for a firm’s total revenue minus its total cost?
a. Accounting profit
b. Economic profit
c. Marginal profit
d. Gross profit
Answer: a. Accounting profit
In managerial economics, what is the term for the proportionate change in quantity demanded in response to a proportionate change in price?
a. Cross-price elasticity
b. Income elasticity
c. Price elasticity of demand
d. Substitution effect
Answer: c. Price elasticity of demand
Which of the following is a characteristic of perfect competition in managerial economics?
a. Many buyers and sellers
b. Price taker behavior
c. Few dominant firms
d. Identical products
Answer: a. Many buyers and sellers
What is the term for the change in total cost resulting from producing one additional unit of output?
a. Marginal cost
b. Variable cost
c. Average cost
d. Fixed cost
Answer: a. Marginal cost
In managerial economics, what is the term for the total cost of producing one more unit of output?
a. Marginal cost
b. Variable cost
c. Average cost
d. Fixed cost
Answer: a. Marginal cost
Which market structure is characterized by a single seller with significant control over the market price?
a. Perfect competition
b. Oligopoly
c. Monopoly
d. Monopolistic competition
Answer: c. Monopoly
What is the term for a firm’s total revenue divided by the quantity of output it produces?
a. Average revenue
b. Marginal revenue
c. Total revenue
d. Total cost
Answer: a. Average revenue
In managerial economics, what is the term for a good or service for which quantity demanded increases as consumer income rises?
a. Inferior good
b. Normal good
c. Substitute good
d. Complementary good
Answer: b. Normal good
What is the term for the change in total revenue resulting from producing one additional unit of output?
a. Marginal revenue
b. Variable revenue
c. Average revenue
d. Total revenue
Answer: a. Marginal revenue
In managerial economics, what is the term for a firm’s total revenue minus its variable costs?
a. Average variable cost
b. Average fixed cost
c. Average total cost
d. Contribution margin
Answer: d. Contribution margin
Which of the following is a characteristic of monopolistic competition in managerial economics?
a. One seller dominating the market
b. Identical products
c. Price taker behavior
d. Many sellers with differentiated products
Answer: d. Many sellers with differentiated products
What is the term for a firm’s total revenue minus its explicit costs and implicit costs?
a. Accounting profit
b. Economic profit
c. Marginal profit
d. Gross profit
Answer: b. Economic profit
In managerial economics, what is the term for a situation where the quantity of a good demanded is equal to the quantity supplied?
a. Market equilibrium
b. Price ceiling
c. Price floor
d. Market surplus
Answer: a. Market equilibrium
Which of the following is a characteristic of perfect competition in managerial economics?
a. Many buyers and sellers
b. Price taker behavior
c. Few dominant firms
d. Identical products
Answer: a. Many buyers and sellers
What is the term for the situation where a firm produces the quantity of output where average total cost is minimized?
a. Profit maximization
b. Revenue maximization
c. Cost minimization
d. Equilibrium output
Answer: c. Cost minimization
In managerial economics, what is the term for a firm’s total revenue minus its explicit costs?
a. Accounting profit
b. Economic profit
c. Marginal profit
d. Gross profit
Answer: a. Accounting profit
What is the term for the additional revenue generated from selling one more unit of a good or service?
a. Average revenue
b. Marginal revenue
c. Total revenue
d. Total cost
Answer: b. Marginal revenue
In managerial economics, what is the term for a situation where the quantity of a good demanded exceeds the quantity supplied?
a. Market equilibrium
b. Price ceiling
c. Price floor
d. Market shortage
Answer: d. Market shortage
Which of the following is a characteristic of monopolistic competition in managerial economics?
a. One seller dominating the market
b. Identical products
c. Price taker behavior
d. Many sellers with differentiated products
Answer: d. Many sellers with differentiated products
What is the term for the proportionate change in quantity demanded of one good in response to a proportionate change in the price of another good?
a. Cross-price elasticity
b. Income elasticity
c. Price elasticity of demand
d. Substitution effect
Answer: a. Cross-price elasticity
In managerial economics, what is the term for the situation where the quantity of a good demanded is equal to the quantity supplied?
a. Market equilibrium
b. Price ceiling
c. Price floor
d. Market surplus
Answer: a. Market equilibrium
What is the term for a market structure where there are only a few sellers and each has significant control over price?
a. Perfect competition
b. Monopoly
c. Oligopoly
d. Monopolistic competition
Answer: c. Oligopoly
In managerial economics, what is the term for the responsiveness of quantity demanded to a change in consumer income?
a. Cross-price elasticity
b. Income elasticity
c. Price elasticity of demand
d. Substitution effect
Answer: b. Income elasticity