HBX Core: Economics for Managers Exam | Verified Exam Questions and Answers | Latest Updated Study Material 2026

HBX Core: Economics for Managers Exam | Verified Exam Questions
and Answers | Latest Updated Study Material 2026

Question:

HBX Core: Economics for Managers Exam | Comprehensive
marginal cost
Answer:

the increase in total cost that arises from an extra
unit of production

Question:

When is consumer surplus + producer surplus maximized?
Answer:

At
market equilibrium. this is the property of efficiency- there is no deadweight loss

Question:

deadweight loss
Answer:

the total loss of producer and consumer surplus
from underproduction or overproduction. Loss in value from trades that didn't occur.

Question:

Price ceiling effect when ceiling is lower than market
Answer:

Excess
demand or shortage

Question:

price floor effects
Answer:

Excess supply, eg. Minimum wage and
unemployment

, Question:

Effect of tax on producer and consumer
Answer:

Producer- Shifts supply
curve upward/ to left

Question:

Consumer- shifts demand curve leftward
Impact on market equilibrium is same regardless of who pays the tax. Like price ceilings and
floors, taxes decrease the total surplus captured in a market (resulting in deadweight loss)
Consumers bear more of tax cost when demand curve is...
Answer:

Steeper (inelastic). Producers bear more of tax when supply curve is steeper.

Question:

Total surplus =
Answer:

value to buyers - cost to sellers

Question:

WTP - WTS
optimal pricing
Answer:

Marginal revenue = marginal cost

Question:

Marginal revenue vs demand curve
Answer:

In competitive market, MR
=D

Question:

In monopoly, MR < D
perfect price discrimination