Question 1

According to the Five Forces Framework, sustainable industry profits depend upon

Accepted Answer

A) industry entry conditions. 
B) the power of input suppliers. 
C) the degree of industry rivalry. 
D) all of the statements associated with this question are correct. 
A) industry entry conditions. 
B) the power of input suppliers. 
C) the degree of industry rivalry. 
D) all of the statements associated with this question are correct.

Question 2

Which of the following is (are) true?

Accepted Answer

A) Accounting costs generally understate economic costs. 
B) Accounting profits generally overstate economic profits. 
C) In the absence of any opportunity costs, accounting profits equal economic profits. 
D) All of the statements associated with this question are correct. 
A) Accounting costs generally understate economic costs. 
B) Accounting profits generally overstate economic profits. 
C) In the absence of any opportunity costs, accounting profits equal economic profits. 
D) All of the statements associated with this question are correct.

Question 3

Consumer-consumer rivalry arises because of:

Accepted Answer

A) human nature. 
B) the limited number of suppliers. 
C) the scarcity of goods available. 
D) none of the statements associated with this question are correct. 
A) human nature. 
B) the limited number of suppliers. 
C) the scarcity of goods available. 
D) none of the statements associated with this question are correct.

Question 4

When dealing with present value, a higher interest rate:

Accepted Answer

A) does not effect the present value of the future amount. 
B) increases the present value of a future amount. 
C) decreases the present value of a future amount. 
D) none of the statements associated with this question are correct. 
A) does not effect the present value of the future amount. 
B) increases the present value of a future amount. 
C) decreases the present value of a future amount. 
D) none of the statements associated with this question are correct.

Question 5

Consumer-producer rivalry occurs because of:

Accepted Answer

A) consumers' high valuation and producers' low production cost of a good. 
B) producers' high production cost and consumers' low valuation of a good. 
C) the competing interests of consumers and producers. 
D) none of the statements associated with this question are correct. 
A) consumers' high valuation and producers' low production cost of a good. 
B) producers' high production cost and consumers' low valuation of a good. 
C) the competing interests of consumers and producers. 
D) none of the statements associated with this question are correct.

Question 6

-Suppose total benefits and total costs are given by B(Y) = 150Y - 10Y2 and C(Y) = 5Y2.Then marginal costs are:

Accepted Answer

A) 2.5Y. 
B) 25Y. 
C) 5Y. 
D) 10Y. 
A) 2.5Y. 
B) 25Y. 
C) 5Y. 
D) 10Y.

Question 7

Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y2 and C(Y) = 10Y2.What is the maximum level of net benefits?

Accepted Answer

A) 92. 
B) 139. 
C) 78. 
D) none of the statements associated with this question are correct. 
A) 92. 
B) 139. 
C) 78. 
D) none of the statements associated with this question are correct.

Question 8

When MB = 300 - 12Y and TC = 12Y + 108, the optimal level of Y is:

Accepted Answer

A) 25. 
B) 4.5. 
C) 8. 
D) 24. 
A) 25. 
B) 4.5. 
C) 8. 
D) 24.

Question 9

The additional cost incurred by using an additional unit of the managerial control variable is defined as the:

Accepted Answer

A) total cost. 
B) net cost. 
C) net benefit. 
D) marginal cost. 
A) total cost. 
B) net cost. 
C) net benefit. 
D) marginal cost.

Question 10

Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $100,000.

Accepted Answer

A) 0.15 percent. 
B) 15 percent. 
C) 0.1765 percent. 
D) 17.65 percent. 
A) 0.15 percent. 
B) 15 percent. 
C) 0.1765 percent. 
D) 17.65 percent.

Question 11

If the interest rate is 5%, what is the present value of ten dollars received one year from now?

Accepted Answer

A) $9.50. 
B) $10.05. 
C) $9.52. 
D) $9.77. 
A) $9.50. 
B) $10.05. 
C) $9.52. 
D) $9.77.

Question 12

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

Accepted Answer

A) $7,392.29. 
B) $8,400.34. 
C) $4,222.50 
D) $400.74. 
A) $7,392.29. 
B) $8,400.34. 
C) $4,222.50 
D) $400.74.

Question 13

If marginal benefits exceed marginal costs, it is profitable to:

Accepted Answer

A) increase Q. 
B) decrease Q. 
C) stay at that level of Q. 
D) all of the statements associated with this question are correct. 
A) increase Q. 
B) decrease Q. 
C) stay at that level of Q. 
D) all of the statements associated with this question are correct.

Question 14

Which of the following is the incorrect statement?

Accepted Answer

A) The marginal benefits curve is the slope of the total benefits curve. 
B) dB(Q)/dQ = MB. 
C) The slope of the net benefit curve is horizontal where MB = MC. 
D) The difference in the slope of the total benefit curve and the total cost curve is maximized at the optimal level of Q. 
A) The marginal benefits curve is the slope of the total benefits curve. 
B) dB(Q)/dQ = MB. 
C) The slope of the net benefit curve is horizontal where MB = MC. 
D) The difference in the slope of the total benefit curve and the total cost curve is maximized at the optimal level of Q.

Question 15

Maximizing total benefits is equivalent to maximizing net benefits if and only if there are:

Accepted Answer

A) constant costs associated with achieving more benefits. 
B) no costs associated with achieving more benefits. 
C) increasing costs associated with achieving more benefits. 
D) decreasing costs associated with achieving more benefits. 
A) constant costs associated with achieving more benefits. 
B) no costs associated with achieving more benefits. 
C) increasing costs associated with achieving more benefits. 
D) decreasing costs associated with achieving more benefits.

Question 16

-What is the net benefit associated with producing two units of the control variable, Q (identify point C in the above table)?

Accepted Answer

A) 600. 
B) 800. 
C) 1,200. 
D) 1,400. 
A) 600. 
B) 800. 
C) 1,200. 
D) 1,400.

Question 17

Total benefits in the above table are

Accepted Answer

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

Question 18

-What is the marginal net benefit of producing the fourth unit?

Accepted Answer

A) -50. 
B) 0. 
C) 60. 
D) 40. 
A) -50. 
B) 0. 
C) 60. 
D) 40.

Question 19

Negotiation between the buyer and seller of a new ski-boat is an example of:

Accepted Answer

A) consumer-producer rivalry. 
B) consumer-consumer rivalry. 
C) producer-producer rivalry. 
D) none of the statements associated with this question are correct. 
A) consumer-producer rivalry. 
B) consumer-consumer rivalry. 
C) producer-producer rivalry. 
D) none of the statements associated with this question are correct.

Question 20

-What is the marginal net benefit of producing the twentieth unit?

Accepted Answer

A) 2. 
B) -5. 
C) -2. 
D) 8. 
A) 2. 
B) -5. 
C) -2. 
D) 8.

According to the Five Forces Framework, sustainable industry profits depend upon

Which of the following is (are) true?

Consumer-consumer rivalry arises because of:

When dealing with present value, a higher interest rate:

Consumer-producer rivalry occurs because of:

-Suppose total benefits and total costs are given by B(Y) = 150Y - 10Y² and C(Y) = 5Y².Then marginal costs are:

Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y² and C(Y) = 10Y².What is the maximum level of net benefits?

When MB = 300 - 12Y and TC = 12Y + 108, the optimal level of Y is:

The additional cost incurred by using an additional unit of the managerial control variable is defined as the:

Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $100,000.

If the interest rate is 5%, what is the present value of ten dollars received one year from now?

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

If marginal benefits exceed marginal costs, it is profitable to:

Which of the following is the incorrect statement?

Maximizing total benefits is equivalent to maximizing net benefits if and only if there are:

-What is the net benefit associated with producing two units of the control variable, Q (identify point C in the above table)?

Total benefits in the above table are

-What is the marginal net benefit of producing the fourth unit?

Negotiation between the buyer and seller of a new ski-boat is an example of:

-What is the marginal net benefit of producing the twentieth unit?

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

Exam 1: The Fundamentals of Managerial Economics

According to the Five Forces Framework, sustainable industry profits depend upon

Which of the following is (are) true?

Consumer-consumer rivalry arises because of:

When dealing with present value, a higher interest rate:

Consumer-producer rivalry occurs because of:

-Suppose total benefits and total costs are given by B(Y) = 150Y - 10Y2 and C(Y) = 5Y2.Then marginal costs are:

Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y2 and C(Y) = 10Y2.What is the maximum level of net benefits?

When MB = 300 - 12Y and TC = 12Y + 108, the optimal level of Y is:

The additional cost incurred by using an additional unit of the managerial control variable is defined as the:

Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $100,000.

If the interest rate is 5%, what is the present value of ten dollars received one year from now?

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

If marginal benefits exceed marginal costs, it is profitable to:

Which of the following is the incorrect statement?

Maximizing total benefits is equivalent to maximizing net benefits if and only if there are:

-What is the net benefit associated with producing two units of the control variable, Q (identify point C in the above table)?

Total benefits in the above table are

-What is the marginal net benefit of producing the fourth unit?

Negotiation between the buyer and seller of a new ski-boat is an example of:

-What is the marginal net benefit of producing the twentieth unit?

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

-Suppose total benefits and total costs are given by B(Y) = 150Y - 10Y² and C(Y) = 5Y².Then marginal costs are:

Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y² and C(Y) = 10Y².What is the maximum level of net benefits?