Key Concepts in Managerial Economics
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fbarnachea.filesKey Concepts in Managerial Economics
Uploaded by
fbarnachea.files✅
b) Wages
c) Rent
Managerial Economics d) Shipping fees
1. What is the main goal of managerial
7. What is price elasticity of demand?
economics?
a) The difference between supply
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a) Maximize profits and optimize
and demand
decision-making
b) A measure of how much quantity
b) Minimize government
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demanded responds to price
intervention
changes
c) Predict economic recessions
c) The effect of inflation on demand
d) Study past economic trends
d) The cost of production
2. Which market structure has many
8. What is opportunity cost?
sellers selling similar but not
a) The money spent on production
identical products?
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b) The next best alternative
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a) Perfect competition
foregone
b) Monopolistic competition
c) The profit earned from a decision
c) Oligopoly
d) The total revenue of a company
d) Monopoly
9. What type of market has a single
3. What is marginal cost?
seller?
a) The cost of all units produced
a) Oligopoly
b) The total cost of production
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b) Monopolistic competition
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c) The cost of producing one more
c) Monopoly
unit
d) Perfect competition
d) The selling price of one unit
10.What is break-even analysis used
4. What is a demand curve?
for?
a) A graph showing the relationship
a) Setting maximum profits
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between price and quantity
b) Measuring production levels
demanded
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c) Determining when total revenue
b) A report on sales trends
equals total cost
c) A table listing prices of products
d) Reducing employee wages
d) A company's pricing strategy
5. What happens when demand
exceeds supply?
a) Surplus
b) Deflation
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c) Equilibrium
d) Shortage
6. What is an example of a fixed cost?
a) Raw materials
