question
the market supply curve shows the quantity of a good or service that, holding other possible influences constant
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firms would sell at various prices
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managerial economics uses what to help managers solve problems?
answer
formal models
prescribed behavior
quantitative methods
microeconomic theory
prescribed behavior
quantitative methods
microeconomic theory
question
managers may make decisions that are not consistent with the goals of stockholders
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economic disincentive
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refers to the potential costs of separation of ownership and control
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principal agent problem
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the economic theory of the firm assumes that primary objective of a firm's owner or owners is to
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maximize the value of the rm
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owner supplied labor is a cost that is usually
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included in economic costs but not in accounting costs
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the difference between accounting and economic profit is
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the value of owned resources in their next best alternative use. the result of superior training received by accountants
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managers may make decisions that are not consistent with the goals of stockholders. this is referred to what problem?
answer
economic disincentive
question
the market demand schedule shows the quantities that would be purchased, holding all other factors constant, from group of firms during a given time period
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varying prices
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a graphical representation of the demand function is called a
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demand curve
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a market demand curve is likely to shift to the right when
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population increases
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the price elasticity of demand can be interpreted as the
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percentage change in the quantity demanded divided by the percentage change in the good's price
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california imposes strict new regulations on the blending of gasoline that increase production costs. as a result, the
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supply of gasoline will decrease
question
in the article "Colombia, Brazil Advanced Proposal to Withhold 10 percent of export output" a Colombian delegate to the International Coffee Organization said that if all its members withheld 10% of export output, the international price would rise 20%. this statement implies that the price elasticity of demand for coffee is approx?
answer
0.50
question
the demand for cough medicine is Q=10-2P, at what price of $2.50, the price elasticity of demand is
answer
-1
question
the demand for personal computers has been estimated to be Q=500,000-700P+200I-500S. Assume that per capita income I is $13,000 and the average price of software S is $400. When the price of personal computers is P=$3,000, the price elasticity of demand is:
answer
-2.625
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total revenue is rising with increases in output whenever
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marginal revenue is positive
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points along an indifference curve represent bundles of goods that
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deliver equal utility
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sarah jones believes that coke and pepsi are perfect substitutes. that is, she is equally unhappy with a coke or a pepsi and cannot tell the difference between them. her indifference curves:
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are linear, with slope equal to -1
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the marginal rate of substitution:
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decreases as the consumer moves down a typical indifference curve
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susan is investing in the stock market. she is choosing a variety of stocks; each stock has an expected return and a level of risk attached. susan likes higher returns, but she dislikes risk. if we were to draw indifference curves for susan over risk and expected return, they would be
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upward-sloping
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the consumer's optimal consumption of X and Y is characterized by:
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MU,x/MU,x=P,x/P,y
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the marginal rate of substitution of X for Y is denoted as
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MU,x/MU,y
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suppose Al is currently consuming 4 movies and 4 concerts per month. if his utility function is given by U15M^0.5 C, where M represents the number of movies consumed and C represents the number of concerts attended, what is the marginal utility of the next concert Al will attend?
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60
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a consumer's budget constraint changes slope whenever"
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relative prices change
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consumer surplus is important to firms because
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it represents value consumers receive that they do not pay for
if firms can capture it, they can increase their profitability
if firms can capture it, they can increase their profitability
question
jamie is considering the purchase of a new car for $20,000. her income is $60,000 and her alternatives is "all other things," which sell for $1 each. if all other things are plotted on the vertical axis and her marginal rate of substitution is _______, then she will buy ________ car(s)
answer
15,000
0
0
question
a production function is a table, a graph, or an equation showing the
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maximum output that can be achieved from specified levels of inputs
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hedge fun is a landscaping rm that specializes in topiary. last year, the rm had 60 employees and served 120 customers. this year, it had 70 employees and served 140 customers. the average product of labor is at a maximum when the number of customers is
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between 120 and 140
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the marginal product of labor can be illustrated geometrically as the:
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slope of the total product curve with respect to labor
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hedge fun is landscaping rm that specializes in topiary. last year, the rm had 60 employees and served 120 customers. this year, it had 70 employees and served 140 customers. what is the marginal product of labor?
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2
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when total product is at its maximum
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average product is greater than marginal product
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when average product is at a maximum, marginal product is
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equal to average product
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whenever marginal product is positive and declining with increases use of an input:
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total product is increasing at a decreasing rate as input use increases
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diminishing marginal returns
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are consistent with increasing returns to scale
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if rice can be produced using water and see according to Q=WS, where water, W, costs $3 and see, S, costs $3, what is the cost-minimizing combination of water and seed capable of producing 144 units of rice?
answer
W=12
S=12
S=12
question
...
answer
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