LSUS MBA-703 COMPREHENSIVE TEST SCRIPT 2026 QUESTIONS WITH SOLUTIONS 100% CORRECT

LSUS MBA-703 COMPREHENSIVE TEST
SCRIPT 2026 QUESTIONS WITH
SOLUTIONS 100% CORRECT.


◍ Implicit Costs. Answer: Input costs that do not require money


◍ Opportunity Cost. Answer: Explicit cost of a resource plus the
implicit cost of giving up the best possible alternative.


◍ Changes in Quantity Demanded. Answer: Occurs only when Price is
changed.


◍ Incentive. Answer: Impact how resources are used and how hard
workers work.


◍ If Elasticity = 1. Answer: Unitary elastic


◍ Cross Price Elasticity. Answer: If negative, shows that the two goods
are complements.


◍ Changes in Supply. Answer: Represented by a shift of the supply
curve to the left or right

, ◍ Marginal Cost. Answer: Represented as MC(Q)


◍ When Demand is Elastic. Answer: Total revenue falls when the price
rises


◍ Ay in Demand Function. Answer: If greater than 0, Good Y is a
substitute for Good X


◍ Normal Good. Answer: Demand increases when consumer income
increases


◍ Supply Shifter. Answer: Number of firms along with entry and exit
barriers


◍ Price Floor. Answer: Above Equilibrium price


◍ Total Revenue. Answer: Maximized when elasticity = 1


◍ Role of a Manager. Answer: Construct incentives to induce maximum
effort from employees.