Managerial Economic BUAD364 Midterm
incentive plans imply
if managers put forth little effort, they receive little pay; if they put forth much effort and hence generate many sales, they receive a lot of pay.
if A and B are substitute goods, a decrease in the price of good A would
lead to a decrease in demand for B
the difference between marginal benefits and marginal costs is the:
marginal net benefits
we would expect the demand for jeans to be
more elastic than the demand for clothing.
The elasticity of variable G with respect to variable S is defined as
the percentage change in variable G that results from a given percentage change in variable S
demand shifters do NOT include
the price of the good
changes in the price of good A lead to a change in:
the quantity demanded for good A
consumer-consumer rivalry arises because of
the scarcity of goods available
which of the following is the incorrect statement
the slope of the net benefit curve is vertical where MB=MC
which of the following is the main goal of a continuing company
to maximize the value of the firm
when marginal revenue is zero, demand will be
unit elastic
an excise tax shifts the supply curve
up by the amount of the tax
if the income elasticity for lobster is 0.4, a 40 percent increase in income will lead to a:
16 percent increase in demand for lobster
Good Y is a complement to good X if an increase in the price of good Y leads to
a decrease in the demand for good X
persuasive advertising influences demand by:
altering the underlying tastes of consumers.
if the cross price elasticity between goods A and B is negative, we know the goods are
complements
which one of the following is an implicit cost to a firm that produces a good or service
foregone profits of producing a different good or service
suppose that supply increases and demand decreases, what effect will this have on price and quantity
none of the statements associated with this question are correct
the demand function
recognizes that the quantity of a good consumed depends on its price and demand shifters.
If the own price elasticity of demand is infinite in absolute value, then
the demand curve is horizontal
