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Managerial economics is best defined as the economic study of: correct answers how businesses can decide on the best use of scarce resources. Managerial economics: correct answers helps managers make decisions in the face of scarcity. Microeconomics includes the study of the; correct answers b. choices made by individuals and businesses. The form of economics most relevant to managerial decision-making within the firm is: correct answers b. microeconomics CEOs should focus on correct...

Which of the following is a reason why a firm would experience diseconomies of scale? a. As the size of the firm increases it becomes more difficult to coordinate the operations of its manufacturing plants. b. To finance an increase in the size of its plant a firm must borrow more money or sell more shares of stock. c. As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations. d. As the size of the firm increases, it must o...

Value= correct answers =sum(t=1...n)((TRt)-TCt) / (1+i)t where t = time period / # of years i = discount rate = current interest rate firm value is maximized when: correct answers total revenue is maximized total cost for a given output is minimized total cost = correct answers average cost x quantity produced AC x Q Minimizing average cost also minimizes correct answers total cost for a given output Minimizing average cost also maximizes correct answers firm value Mi...

Relative to a perfectly competitive market, a monopoly results in: a. a gain in producer surplus equal to the loss in consumer surplus. b. a gain in producer surplus less than the loss in consumer surplus. c. greater economic efficiency. d. a gain in producer surplus equal to the gain in consumer surplus. correct answers b. a gain in producer surplus less than the loss in consumer surplus. An oligopolistic industry is characterized by all of the following except a. existence of...

_________ is the cost associated with fixed input correct answers Fixed cost Fixed costs are unrelated to _________. correct answers output Fixed costs are zero in the __________. correct answers long run __________ is the cost that does not vary across decision correct answers Sunk cost _____________ is the time period in which the availability of at least one input is fixed or the quantity of at least one input cannot be changed. correct answers Short-run ____________ is the tim...

The law of diminishing marginal returns states that increases in the variable input reduce the total product. a. True b. False correct answers b. False We should use relatively more labor if we learn that the marginal product per dollar of labor expenditures is less than a marginal product per dollar of capital expenditures. a. True b. False correct answers b. False If a firm has increasing returns to scale, then increasing all inputs by 1% will increase output by more than 1% a...

Economies of scale correct answers If, when a firm double all its inputs, its average cost of production decreases, then production displays A - diminishing returns B - economies of scale C - diseconomies of scale D - declining fixed costs The lowest average cost of producing every level of output in the long run correct answers The long-run average cost curve shows A - the lowest average cost of producing every level of output in the long run B - where the most profitable level of ...

The production possibilities frontier is the A) maximum output that can be produced at an opportunity cost of zero. B) minimum output that can be produced when resources are used inefficiently. C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology. D) boundary between the combinations of goods and services that can be produced and the combinations...

Average variable cost and the cumulative number of units produced correct answers Learning curves represent the relationship between Select one: a. average variable cost and the cumulative number of units produced b. total cost and technology c. average variable cost and the rate of increase in technology d. average variable cost and the number of units produced per time period None of the above is correct correct answers If the marginal product of labor is 2, the marginal product of ...

The best definition of economics is: A) how goods and services are produced. B) how choices are made under conditions of scarcity. C) how businesses maximize profits. D) how money is used. correct answers B) how choices are made under conditions of scarcity Managerial economics is best defined as the economic study of: A) how businesses can decide on the best use of scarce resources. B) how businesses can make the most profits. C) how businesses can sell the most products. D) how busi...

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays a.) diminishing returns b.) economies of scale c.) diseconomies of scale d.) declining fixed costs correct answers b. ) economies of scale The long-run average cost curve shows A) the lowest average cost of producing every level of output in the long run. B) where the most profitable level of output occurs. C) the average cost of producing where diminishing returns are not prese...

D. None of the above correct answers If the marginal product of labor is 2, the marginal product of capital is 4, the wage rate is $3, the rental price of capital is $6, and the price of output is $1.50, then the firm should . Increase output by hiring more labor, more capital, or both. b. Hold output constant, but hire more labor and less capital. c. Decrease output by reducing the quantity of capital, reducing the number of units of labor, or both. d. None of the above is correct. ...

Economies of scale exist as a firm increases its size in the long run because of all the following except: correct answers As a firm expands its production, its profit margin per-unit of output increases Over the past twenty years, the number of small family farms has fallen significantly and in their place there are fewer, but larger, farms owned by corporations. Which of the following best explains this trend? correct answers Economies of scale in farming The president of Toyota's Geor...

If, when a firm double all its inputs, its average cost of production decreases, then production displays correct answers economies of scale The long-run average cost curve shows correct answers the lowest average cost of producing every level of output in the long run All of the following statements are true of the minimum efficient scale except one. Which one? correct answers an increase in the output level will increase profit At the minimum efficient scale correct answers the firm h...

Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are A) substitutes in consumption. B) both inferior goods. C) complements in consumption. D) both luxury goods. correct answers c A change in which variable will change the market demand for a product? A) the price of the product B) population C) technology D) the prices of substitutes in production correct answers b Suppose the value of the price elasticity ...

If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because Select one: a. buyers of steel are less sensitive to a price change if they have more time to adjust to the price change. b. buyers of steel are more sensitive to a price change if they have more time to adjust to the price change. c. sales revenue in the building industry will fall sharply. d. profits will fall by a greater amount in the lon...

Microeconomics studies the allocation of A) decision makers. B) scarce resources. C) models. D) unlimited resources. correct answers b Managerial economics A) describes how pay for managers is set. B) ensures managers always make good decisions. C) helps managers make decisions in the face of scarcity. D) explains which products consumers will buy. correct answers c Microeconomic models are used to A) make predictions. B) explain real-life phenomena. C) evaluate production alter...

Microeconomics studies the allocation of correct answers scarce resources Managerial Economics correct answers helps managers make decisions in the face of scarcity Microeconomics models are used to correct answers make predictions explain real-life phenomena evaluate production alternatives Managerial economics as a specialized branch of economics correct answers provide logic and methodology to find solutions to business problems Managerial Economics is best defined as the econom...

Managerial economics is best defined as the economic study of: a. how businesses can sell the most products. b. how businesses can operate at the lowest costs. c. how businesses can decide on the best use of scarce resources. d. how businesses can make the most profits. correct answers c. how businesses can decide on the best use of scarce resources. Managerial economics: a. describes how pay for managers is set. b. helps managers make decisions in the face of scarcity. c. explains w...