LSUS MBA 701 EXAM 7 HIGH-YIELD PRICING STRATEGY, GAME THEORY, AND FIRM BEHAVIOR SUMMARY 2026

LSUS MBA 701 EXAM 7 HIGH-YIELD PRICING
STRATEGY, GAME THEORY, AND FIRM
BEHAVIOR SUMMARY 2026

◉ identify goals and constraints, recognize the nature and
importance of profits, understand incentives, understand markets,
recognize the time value of money, use marginal analysis and make
data driven decisions.
Answer: the 7 principles of effective managerial decision making


◉ to maximize profits.
Answer: what should a firms overall goal be?


◉ 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.