LSUS MBA 701 EXAM 1 EXAMPREP QUESTIONS
AND DETAILED SOLUTIONS
◉ available technology and prices of inputs used in production.
Answer: what are examples of some constraints?
◉ accounting profit.
Answer: total amount of money from sales (revenue) minus the
dollar cost of producing the goods or services
◉ economic profit.
Answer: the difference between total revenue and total opportunity
cost
◉ opportunity cost.
Answer: the explicit cost of a resource plus the implicit cost of giving
up its best alternative
◉ they signal to resource holders where resources are most highly
valued by society.
Answer: what is the role of profits
, ◉ an incentive to alter their use of resources.
Answer: what to changes in profits provide to resource holders?
◉ how resources are used and how hard workers work.
Answer: what do incentives impact within a firm?
◉ buyer and seller.
Answer: two sides to every market transaction
◉ consumer-producer rivalry, consumer-consumer rivalry and
producer-producer rivalry.
Answer: what is the bargaining position of consumers and
producers limited by in economic transactions?
◉ True.
Answer: T or F: often a gap exists between the time when costs are
incurred and when benefits are received
◉ present value analysis.
Answer: used by managers to properly account for the timing of
receipts and expenditures
◉ the present value of a single future value.
AND DETAILED SOLUTIONS
◉ available technology and prices of inputs used in production.
Answer: what are examples of some constraints?
◉ accounting profit.
Answer: total amount of money from sales (revenue) minus the
dollar cost of producing the goods or services
◉ economic profit.
Answer: the difference between total revenue and total opportunity
cost
◉ opportunity cost.
Answer: the explicit cost of a resource plus the implicit cost of giving
up its best alternative
◉ they signal to resource holders where resources are most highly
valued by society.
Answer: what is the role of profits
, ◉ an incentive to alter their use of resources.
Answer: what to changes in profits provide to resource holders?
◉ how resources are used and how hard workers work.
Answer: what do incentives impact within a firm?
◉ buyer and seller.
Answer: two sides to every market transaction
◉ consumer-producer rivalry, consumer-consumer rivalry and
producer-producer rivalry.
Answer: what is the bargaining position of consumers and
producers limited by in economic transactions?
◉ True.
Answer: T or F: often a gap exists between the time when costs are
incurred and when benefits are received
◉ present value analysis.
Answer: used by managers to properly account for the timing of
receipts and expenditures
◉ the present value of a single future value.
