LSUS MBA 701 EXAM 7 COMPREHENSIVE MANAGERIAL ECONOMICS STUDY GUIDE 2026

LSUS MBA 701 EXAM 7 COMPREHENSIVE
MANAGERIAL ECONOMICS STUDY GUIDE
2026

◉ Changes in Demand.
Answer: Represented by a shift of the demand curve


◉ Total Revenue when Elastic.
Answer: Can be increased by decreasing the price


◉ Marginal Net Benefits.
Answer: Marginal Benefit - Marginal Cost


◉ When Demand is Elastic.
Answer: Total Revenue rises when the price increases


◉ Accounting Profit.
Answer: Revenue - Expenses


◉ Income Elasticity.
Answer: When less than zero, X is a normal good

, ◉ Price Ceiling.
Answer: This is below equilibrium price


◉ Law of Demand.
Answer: Quantity of a good consumers are willing and able to
purchase increases as the price falls


◉ Excise Tax.
Answer: Tax on each unit of output sold. Tax revenue is collected by
the supplier


◉ Changes in Quantity Supplied.
Answer: Represented by a movement along the supply curve


◉ Economic Profit.
Answer: Difference between total revenue and opportunity cost.


◉ Willingness to Pay.
Answer: Buyer will buy a good if they're WTP > Price of Good


◉ Managerial Control Variable.