LSUS MBA 701 EXAM 7 CORE MARKET
STRUCTURES AND STRATEGIC DECISION
MAKING REVIEW 2026
◉ 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.
Answer: Represented as Q
◉ Market Supply Curve.
Answer: Indicates the total quantity of a good that all producers
would produce at each price, holding input prices, technology, and
other variables affecting supply constant.
◉ Implicit Costs.
Answer: Input costs that do not require money
◉ Opportunity Cost.
Answer: Explicit cost of a resource plus the implicit cost of giving up
the best possible alternative.
◉ Changes in Quantity Demanded.
STRUCTURES AND STRATEGIC DECISION
MAKING REVIEW 2026
◉ 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.
Answer: Represented as Q
◉ Market Supply Curve.
Answer: Indicates the total quantity of a good that all producers
would produce at each price, holding input prices, technology, and
other variables affecting supply constant.
◉ Implicit Costs.
Answer: Input costs that do not require money
◉ Opportunity Cost.
Answer: Explicit cost of a resource plus the implicit cost of giving up
the best possible alternative.
◉ Changes in Quantity Demanded.
