LSUS MBA 701 EXAM 2 ACTUAL EXAM PAPER
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ Supply Shifter. Answer: Technology or government regulations
◉ Accounting Profit. Answer: Total amount of money taken in from
sales minus the dollar cost of producing goods or services.
◉ Changes in Demand. Answer: Represented by a shift of the
demand curve
◉ Total Revenue. Answer: If elastic, can be increased by decreasing
the price
◉ Marginal Net Benefits. Answer: Marginal Benefit - Marginal Cost
◉ Implicit Costs. Answer:
◉ W in Supply Function. Answer: Price of an input
◉ Accounting Profit. Answer: Revenue - Expenses
, ◉ Bx in Supply Function. Answer: Greater than zero
◉ Income Elasticity. Answer: When less than zero, X is a normal
good
◉ Law of Demand. Answer: Quantity of a good consumers are
willing and able to purchase increases as the price falls
◉ Excise Tax. Answer: Tax on each unit of output sold. Tax revenue is
collected by the supplier
◉ Changes in Quantity Supplied. Answer: Represented by a
movement along the supply curve
◉ Economic Profit. Answer: Difference between total revenue and
opportunity cost.
◉ Ax in Demand Function. Answer: Less than zero
◉ Managerial Control Variable. Answer: Represented as Q
◉ Px in Demand Function. Answer: Price of good X
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ Supply Shifter. Answer: Technology or government regulations
◉ Accounting Profit. Answer: Total amount of money taken in from
sales minus the dollar cost of producing goods or services.
◉ Changes in Demand. Answer: Represented by a shift of the
demand curve
◉ Total Revenue. Answer: If elastic, can be increased by decreasing
the price
◉ Marginal Net Benefits. Answer: Marginal Benefit - Marginal Cost
◉ Implicit Costs. Answer:
◉ W in Supply Function. Answer: Price of an input
◉ Accounting Profit. Answer: Revenue - Expenses
, ◉ Bx in Supply Function. Answer: Greater than zero
◉ Income Elasticity. Answer: When less than zero, X is a normal
good
◉ Law of Demand. Answer: Quantity of a good consumers are
willing and able to purchase increases as the price falls
◉ Excise Tax. Answer: Tax on each unit of output sold. Tax revenue is
collected by the supplier
◉ Changes in Quantity Supplied. Answer: Represented by a
movement along the supply curve
◉ Economic Profit. Answer: Difference between total revenue and
opportunity cost.
◉ Ax in Demand Function. Answer: Less than zero
◉ Managerial Control Variable. Answer: Represented as Q
◉ Px in Demand Function. Answer: Price of good X
