ENV320 FINAL FINAL TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
● Strategic Decisions •Business actions taken to alter market conditions and behavior
of rivals in ways to..... Increase and/or protect the strategic firm's profit. Strategic
Decisions Business actions taken to alter _______________ in ways that increase
and/or protect the strategic firm's profit. Market conditions and behavior of rivals
Strategic Decisions Strategic decisions are generally ____________ actions managers
can take as circumstances permit. optimal Strategic Decisions While common
business practices are necessary for the goal of _________, strategic decisions are
generally optimal actions managers can take as circumstances permit.
profit-maximization MBA 701 - Chapter One (Notes Only) Strategic Decisions Strategic
decisions are generally optimal actions managers can take as _________
circumstances permit. Firm owners must give up to use resources and also to produce
goods/services. What is this called? Opportunity cost Market-supplied resources, who
is involved? Owned by others who are...... (Name Three) Hired, rented, or leased. They
are owned and used by the firm. (Name It) Owner-supplied resource. Answer: Firm
owners must cover all costs of all resources used by the firm, so the objective is to maximize
profit. True or False?
● True. Answer: Accounting profit does not subtract implicit costs from total revenue. True or
False?
● True. Answer: What is the Accounting profit equation? B) Total revenue - Explicit costs
● B) Total revenue - Explicit costs. Answer: What is the 2nd equation for Economic profit?
C) Total revenue - Explicit costs - Implicit costs
● C) Total revenue - Explicit costs - Implicit costs. Answer: What is the 1st equation for
Economic profit ? A) Total revenue - Total economic cost B) Total revenue - Explicit costs C)
Total revenue - Explicit costs - Implicit costs
● A) Total revenue - Total economic cost. Answer: Total Economic Cost pertains to: A)
Total opportunity cost of resources only B) Total opportunity cost of both kinds of resources
● B) Total opportunity cost of both kinds of resources. Answer: Implicit Cost of
Owner-Supplied Resources pertains to: A) Return Forgone by not taking the owners'
resources to market. B) Total opportunity cost of both kinds of resources C)cover all costs of
, all resources used by the firm
● A) Return Forgone by not taking the owners' resources to market.. Answer: Explicit
Cost of Market-Supplied Resources pertains to: A) Return Forgone by not taking the owners'
resources to market. B) Total opportunity cost of both kinds of resources C)cover all costs of
all resources used by the firm D)Monetary Payments to Resource Owners
● D)Monetary Payments to Resource Owners. Answer: Explicit Cost + Implicit Cost = ? A)
Total Market Cost B) Total Cost C)Total Economical Cost
● C)Total Economical Cost. Answer: Implicit Costs (2 out of 3) What is the second
opportunity cost? A)Using land or capital owned by the firm B)Money provided to businesses
by the owners. C) Time spent managing or working for the firm. D) All of the above
● B)Money provided to businesses by the owners. Answer: Implicit Costs (1 out of 3)
What is Equity Capital? What is the first opportunity Cost. A)Using land or capital owned by
the firm B)Money provided to businesses by the owners. C) Time spent managing or working
for the firm. D) All of the above
● A)Using land or capital owned by the firm. Answer: Which of the following pertains to
Implicit Costs Opportunity Cost? A)Using land or capital owned by the firm B)Money provided
to businesses by the owners. C) Time spent managing or working for the firm. D) All of the
above
● D) All of the above. Answer: Implicit Costs (3 out of 3), What is the third opportunity Cost?
A)Using land or capital owned by the firm B)Money provided to businesses by the owners. C)
Time spent managing or working for the firm. D) All of the above
● C) Time spent managing or working for the firm. Answer: What of the following pertains
to Total Economic Cost? A) Sum of opportunity costs of both market-supplied resources and
owner-supplied resources. B)Monetary opportunity costs of using market-supplied resources
only. C) Implicit Costs Nonmonetary opportunity costs of using owner-supplied resources
only.
● A) Sum of opportunity costs of both market-supplied resources and owner-supplied
resources.. Answer: What of the following pertains to Explicit Cost? A) Sum of opportunity
costs of both market-supplied resources and owner-supplied resources. B)Monetary
opportunity costs of using market-supplied resources only. C) Implicit Costs Nonmonetary
opportunity costs of using owner-supplied resources only.
● B) Monetary opportunity costs of using market-supplied resources only.. Answer:
What of the following pertains to Implicit Cost? A) Sum of opportunity costs of both
CORRECT ANSWERS GRADED A+
● Strategic Decisions •Business actions taken to alter market conditions and behavior
of rivals in ways to..... Increase and/or protect the strategic firm's profit. Strategic
Decisions Business actions taken to alter _______________ in ways that increase
and/or protect the strategic firm's profit. Market conditions and behavior of rivals
Strategic Decisions Strategic decisions are generally ____________ actions managers
can take as circumstances permit. optimal Strategic Decisions While common
business practices are necessary for the goal of _________, strategic decisions are
generally optimal actions managers can take as circumstances permit.
profit-maximization MBA 701 - Chapter One (Notes Only) Strategic Decisions Strategic
decisions are generally optimal actions managers can take as _________
circumstances permit. Firm owners must give up to use resources and also to produce
goods/services. What is this called? Opportunity cost Market-supplied resources, who
is involved? Owned by others who are...... (Name Three) Hired, rented, or leased. They
are owned and used by the firm. (Name It) Owner-supplied resource. Answer: Firm
owners must cover all costs of all resources used by the firm, so the objective is to maximize
profit. True or False?
● True. Answer: Accounting profit does not subtract implicit costs from total revenue. True or
False?
● True. Answer: What is the Accounting profit equation? B) Total revenue - Explicit costs
● B) Total revenue - Explicit costs. Answer: What is the 2nd equation for Economic profit?
C) Total revenue - Explicit costs - Implicit costs
● C) Total revenue - Explicit costs - Implicit costs. Answer: What is the 1st equation for
Economic profit ? A) Total revenue - Total economic cost B) Total revenue - Explicit costs C)
Total revenue - Explicit costs - Implicit costs
● A) Total revenue - Total economic cost. Answer: Total Economic Cost pertains to: A)
Total opportunity cost of resources only B) Total opportunity cost of both kinds of resources
● B) Total opportunity cost of both kinds of resources. Answer: Implicit Cost of
Owner-Supplied Resources pertains to: A) Return Forgone by not taking the owners'
resources to market. B) Total opportunity cost of both kinds of resources C)cover all costs of
, all resources used by the firm
● A) Return Forgone by not taking the owners' resources to market.. Answer: Explicit
Cost of Market-Supplied Resources pertains to: A) Return Forgone by not taking the owners'
resources to market. B) Total opportunity cost of both kinds of resources C)cover all costs of
all resources used by the firm D)Monetary Payments to Resource Owners
● D)Monetary Payments to Resource Owners. Answer: Explicit Cost + Implicit Cost = ? A)
Total Market Cost B) Total Cost C)Total Economical Cost
● C)Total Economical Cost. Answer: Implicit Costs (2 out of 3) What is the second
opportunity cost? A)Using land or capital owned by the firm B)Money provided to businesses
by the owners. C) Time spent managing or working for the firm. D) All of the above
● B)Money provided to businesses by the owners. Answer: Implicit Costs (1 out of 3)
What is Equity Capital? What is the first opportunity Cost. A)Using land or capital owned by
the firm B)Money provided to businesses by the owners. C) Time spent managing or working
for the firm. D) All of the above
● A)Using land or capital owned by the firm. Answer: Which of the following pertains to
Implicit Costs Opportunity Cost? A)Using land or capital owned by the firm B)Money provided
to businesses by the owners. C) Time spent managing or working for the firm. D) All of the
above
● D) All of the above. Answer: Implicit Costs (3 out of 3), What is the third opportunity Cost?
A)Using land or capital owned by the firm B)Money provided to businesses by the owners. C)
Time spent managing or working for the firm. D) All of the above
● C) Time spent managing or working for the firm. Answer: What of the following pertains
to Total Economic Cost? A) Sum of opportunity costs of both market-supplied resources and
owner-supplied resources. B)Monetary opportunity costs of using market-supplied resources
only. C) Implicit Costs Nonmonetary opportunity costs of using owner-supplied resources
only.
● A) Sum of opportunity costs of both market-supplied resources and owner-supplied
resources.. Answer: What of the following pertains to Explicit Cost? A) Sum of opportunity
costs of both market-supplied resources and owner-supplied resources. B)Monetary
opportunity costs of using market-supplied resources only. C) Implicit Costs Nonmonetary
opportunity costs of using owner-supplied resources only.
● B) Monetary opportunity costs of using market-supplied resources only.. Answer:
What of the following pertains to Implicit Cost? A) Sum of opportunity costs of both
