MBA 651 FINAL EXAM 2025 ACTUAL EXAM 150 COMPLETE EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
The supply function:
A. describes how much of good X will be produced at an alternative price of good
X, given all the other variables being constant.
B. recognizes that the quantity of a good produced depends on its price and
supply shifters.
C. shows the relationship between the quantity supplied of X and variables other
than its price
D. does not include technology.
B
Which of the following is a correct representation of the profit maximization
condition for a monopoly?
P = MR.
MC = MR.
P = ATC + MR.
MR = MC + ATC.
MC=MR
The demand for good X has been estimated by Q xd =12 - 3Px + 4Py. Suppose
that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own
price elasticity.
-0.2.
-0.3.
-0.4.
-0.5.
-0.6.
-0.6
Suppose P = 20 - 2Q is the market demand function for a local monopoly. The
marginal cost is 2Q. The local monopoly tries to maximize its profits by equating
MC = MR and charging a uniform price. What will be the equilibrium price and
output?
A. $6.33, 3.33.
B. $6.33, 5.
C. $13.33, 3.33.
D. $10, 5.
C.
If the price of good X is $10 and the price of good Y is $5, how much of good X
would the consumer purchase if her income is $15?
0.
1.
,2.
3.
Cannot tell based on the above information.
Cannot tell based on the above information
For the multiproduct cost function C (Q1, Q2) = 100 + 2Q1Q2 + 4Q12, what is the
marginal cost function for good one?
A. MC1 = 2Q2 + 4Q1 - Q22.
B. MC1 = 2Q2 + 8Q1.
C. MC1 = 100 + 2Q1Q2 + 4Q12.
D. MC1 = 4Q12 - 2 Q22.
You are a manager in a perfectly competitive market. The price in your market is
$14. Your total cost curve is C(Q) = 10 + 4Q + 0.5 Q2. What level of profits will you
make in the short-run?
$20.
$40.
$60.
$80.
$40
What is the maximum amount of good Y that can be purchased if X and Y are the
only two goods available for purchase and Px = $10, Py = $15, X = 30, and M =
600?
A. 10
B. 15
C. 20
D. 25
C.
If your demand for renting videos is Q = 5 - 2P, should you purchase the annual
membership from a video store that charges $0.5 per rental, plus an annual
membership fee of $12?
A. definitely yes.
B. definitely no.
C. probably yes.
D. cannot be decided.
B.
An apple farmer must decide how many apples to harvest for the world apple
market. He knows that there is a one-third probability that the world price will be
$1, a one-third probability that it will be $1.5, and a one-third probability that it will
be $2. His cost function is C(Q) = .01Q2. What is the expected price in the world
apple market?
A. $1.5.
B. $1.8.
, C. $2.0.
D. $1.4.
A.
Consumers spend a lot more time searching for good bargains during recessions
because:
A. goods are more expensive during recessions and hence expected benefits of a
search are higher.
B. In recessions, many individuals are out of work, which lowers their opportunity
cost of time.
C. both a and b.
D. none of the above.
B.
Holding the mean value of a gamble constant, the larger the standard deviation,
the
A. higher the utility will be from the gamble.
B. less risky the gamble will be.
C. more risky the gamble will be.
D. none of the above.
C.
Which of the following is not a feature of Sweezy oligopoly?
A.There are two firms in the market serving many consumers.
B. The firms produce homogenous products.
C. Each firm believes that rivals will cut their prices in response to a price
reduction, but will not raise their prices in response to a price increase.
D. Barriers to entry exist.
B.
Consider the following information for a simultaneous move game: If you
advertise and your rival advertises, you each will earn $5 million in profits. If
neither of you advertise, you will each earn $10 million in profits. However, if one
of you advertises and the other does not, the firm that advertises will earn $15
million and the non-advertising firm will earn $1 million. If you and your rival plan
to be in business for 10 years, then the Nash equilibrium is
A. For each firm to advertise every year.
B. For neither firm to advertise in early years, but to advertise in later years.
C. For each firm to not advertise in any year.
D. For each firm to advertise in early years, but not advertise in later years.
A.
Firms will often implement randomized pricing in an attempt to reduce
A. only competitor price information.
WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
The supply function:
A. describes how much of good X will be produced at an alternative price of good
X, given all the other variables being constant.
B. recognizes that the quantity of a good produced depends on its price and
supply shifters.
C. shows the relationship between the quantity supplied of X and variables other
than its price
D. does not include technology.
B
Which of the following is a correct representation of the profit maximization
condition for a monopoly?
P = MR.
MC = MR.
P = ATC + MR.
MR = MC + ATC.
MC=MR
The demand for good X has been estimated by Q xd =12 - 3Px + 4Py. Suppose
that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own
price elasticity.
-0.2.
-0.3.
-0.4.
-0.5.
-0.6.
-0.6
Suppose P = 20 - 2Q is the market demand function for a local monopoly. The
marginal cost is 2Q. The local monopoly tries to maximize its profits by equating
MC = MR and charging a uniform price. What will be the equilibrium price and
output?
A. $6.33, 3.33.
B. $6.33, 5.
C. $13.33, 3.33.
D. $10, 5.
C.
If the price of good X is $10 and the price of good Y is $5, how much of good X
would the consumer purchase if her income is $15?
0.
1.
,2.
3.
Cannot tell based on the above information.
Cannot tell based on the above information
For the multiproduct cost function C (Q1, Q2) = 100 + 2Q1Q2 + 4Q12, what is the
marginal cost function for good one?
A. MC1 = 2Q2 + 4Q1 - Q22.
B. MC1 = 2Q2 + 8Q1.
C. MC1 = 100 + 2Q1Q2 + 4Q12.
D. MC1 = 4Q12 - 2 Q22.
You are a manager in a perfectly competitive market. The price in your market is
$14. Your total cost curve is C(Q) = 10 + 4Q + 0.5 Q2. What level of profits will you
make in the short-run?
$20.
$40.
$60.
$80.
$40
What is the maximum amount of good Y that can be purchased if X and Y are the
only two goods available for purchase and Px = $10, Py = $15, X = 30, and M =
600?
A. 10
B. 15
C. 20
D. 25
C.
If your demand for renting videos is Q = 5 - 2P, should you purchase the annual
membership from a video store that charges $0.5 per rental, plus an annual
membership fee of $12?
A. definitely yes.
B. definitely no.
C. probably yes.
D. cannot be decided.
B.
An apple farmer must decide how many apples to harvest for the world apple
market. He knows that there is a one-third probability that the world price will be
$1, a one-third probability that it will be $1.5, and a one-third probability that it will
be $2. His cost function is C(Q) = .01Q2. What is the expected price in the world
apple market?
A. $1.5.
B. $1.8.
, C. $2.0.
D. $1.4.
A.
Consumers spend a lot more time searching for good bargains during recessions
because:
A. goods are more expensive during recessions and hence expected benefits of a
search are higher.
B. In recessions, many individuals are out of work, which lowers their opportunity
cost of time.
C. both a and b.
D. none of the above.
B.
Holding the mean value of a gamble constant, the larger the standard deviation,
the
A. higher the utility will be from the gamble.
B. less risky the gamble will be.
C. more risky the gamble will be.
D. none of the above.
C.
Which of the following is not a feature of Sweezy oligopoly?
A.There are two firms in the market serving many consumers.
B. The firms produce homogenous products.
C. Each firm believes that rivals will cut their prices in response to a price
reduction, but will not raise their prices in response to a price increase.
D. Barriers to entry exist.
B.
Consider the following information for a simultaneous move game: If you
advertise and your rival advertises, you each will earn $5 million in profits. If
neither of you advertise, you will each earn $10 million in profits. However, if one
of you advertises and the other does not, the firm that advertises will earn $15
million and the non-advertising firm will earn $1 million. If you and your rival plan
to be in business for 10 years, then the Nash equilibrium is
A. For each firm to advertise every year.
B. For neither firm to advertise in early years, but to advertise in later years.
C. For each firm to not advertise in any year.
D. For each firm to advertise in early years, but not advertise in later years.
A.
Firms will often implement randomized pricing in an attempt to reduce
A. only competitor price information.
