LSUS MBA 701 2 COMPREHENSIVE
STUDY GUIDE 2026 FULL QUESTIONS
AND SOLUTIONS GRADED A+
◍ 19.
Answer: Fill out the table and answer the question below. The average
product of labor when 4 units of labor are employed is
◍ Elasticity allows us to.
Answer: analyze supply and demand with greater precision.
◍ Elasticity is a measure of.
Answer: how much buyers and sellers respond to changes in market
conditions
◍ 60.
Answer: Given the table below, if labor is fixed at three units, how much
does the third unit of capital add to total output? Amount of total output
produced from various combinations of labor and capital.
◍ The price elasticity of demand is a measure of.
Answer: how much the quantity demanded of a good responds to a change
in the price of that good.
◍ Determinants of The Price Elasticity of Demand.
Answer: •Availability of Close Substitutes•Necessities versus
Luxuries•Definition of the Market•Time Horizon
◍ 28; 2.763.
Answer: The following linear demand specification is estimated for Conlan
Enterprises, a price-setting firm: Q = a + bP + cM + dPR where Q is the
quantity demanded of the product Conlan Enterprises sells, P is the price of
, that product, M is income, and PR is the price of a related product. To test
the significance of the regression coefficients, the degrees of freedom are
_____ and the t value at 1% significance level is ____.
◍ None of the choices are correct.
Answer: Given the table below, if capital is fixed at two units, what is the
marginal product of the fourth unit of labor? Amount of total output
produced from various combinations of labor and capital.
◍ 100.
Answer: If labor is fixed at 5 units, how much does the second unit of
capital add to total output? Amount of total output produced from various
combinations of labor and capital.
◍ 600.
Answer: The following linear demand specification is estimated for Conlan
Enterprises, a price-setting firm:Q = a + bP + cM + dPRwhere Q is the
quantity demanded of the product Conlan Enterprises sells, P is the price of
that product, M is income, and PR is the price of a related product. Assume
that the income is $10,000, the price of the related good is $40, and Conlan
chooses to set the price of this product at $30. At the prices and income
given above, Conlan can expect to sell _________units.
◍ All are statistically significant.
Answer: The following linear demand specification is estimated for Conlan
Enterprises, a price-setting firm:Q = a + bP + cM + dPRwhere Q is the
quantity demanded of the product Conlan Enterprises sells, P is the price of
that product, M is income, and PR is the price of a related product. Given
the above, at the 1% level of significance, which estimates are statistically
significant?
◍ d. prefers oranges to peaches..
Answer: If Mary prefers bananas to plums and plums to peaches, but is
indifferent between bananas and oranges, shea. is indifferent between
oranges and plums.b. prefers plums to oranges.c. is indifferent between
oranges and peaches.d. prefers oranges to peaches.
, ◍ •Demand tends to be more elastic:.
Answer: •the larger the number of close substitutes.•if the good is a
luxury.•the more narrowly defined the market.•the longer the time period.
◍ d. shows the relation between the amount of goods consumed and a
consumer's utility..
Answer: A utility functiona. All of the choices are correct.b. shows the
relation between prices and a consumer's utility.c. shows the relation
between income and a consumer's utility.d. shows the relation between the
amount of goods consumed and a consumer's utility.
◍ a. the cost of producing the product..
Answer: Which of the following will NOT affect the elasticity of demand
for a product?a. the cost of producing the product.b. the number of
substitutesc. how long consumers have to adapt to price changes.d. All of
the choices will affect the elasticity of demand for a product.e. the
percentage of the consumer's budget spent on the product.
◍ d. demand is elastic..
Answer: When marginal revenue is positive,a. decreasing price will decrease
total revenue.b. All of the choices are correct.c. marginal revenue is greater
than price.d. demand is elastic.e. both "marginal revenue is greater than
price" and "decreasing price will decrease total revenue".
◍ The price elasticity of demand is computed as.
Answer: the percentage change in the quantity demanded divided by the
percentage change in price.PED = %^Qd / %^P
◍ The midpoint formula is preferable when calculating the price elasticity of
demand because.
Answer: it gives the same answer regardless of the direction of the price
change.((Q2-Q1)/[(Q1+Q2)/2]) / ((P2-P1)/[(P1+P2)/2])
◍ The Variety of Demand Curves.
Answer: •Inelastic Demand•Elastic Demand•Perfectly Inelastic•Perfectly
Elastic•Unit Elastic
STUDY GUIDE 2026 FULL QUESTIONS
AND SOLUTIONS GRADED A+
◍ 19.
Answer: Fill out the table and answer the question below. The average
product of labor when 4 units of labor are employed is
◍ Elasticity allows us to.
Answer: analyze supply and demand with greater precision.
◍ Elasticity is a measure of.
Answer: how much buyers and sellers respond to changes in market
conditions
◍ 60.
Answer: Given the table below, if labor is fixed at three units, how much
does the third unit of capital add to total output? Amount of total output
produced from various combinations of labor and capital.
◍ The price elasticity of demand is a measure of.
Answer: how much the quantity demanded of a good responds to a change
in the price of that good.
◍ Determinants of The Price Elasticity of Demand.
Answer: •Availability of Close Substitutes•Necessities versus
Luxuries•Definition of the Market•Time Horizon
◍ 28; 2.763.
Answer: The following linear demand specification is estimated for Conlan
Enterprises, a price-setting firm: Q = a + bP + cM + dPR where Q is the
quantity demanded of the product Conlan Enterprises sells, P is the price of
, that product, M is income, and PR is the price of a related product. To test
the significance of the regression coefficients, the degrees of freedom are
_____ and the t value at 1% significance level is ____.
◍ None of the choices are correct.
Answer: Given the table below, if capital is fixed at two units, what is the
marginal product of the fourth unit of labor? Amount of total output
produced from various combinations of labor and capital.
◍ 100.
Answer: If labor is fixed at 5 units, how much does the second unit of
capital add to total output? Amount of total output produced from various
combinations of labor and capital.
◍ 600.
Answer: The following linear demand specification is estimated for Conlan
Enterprises, a price-setting firm:Q = a + bP + cM + dPRwhere Q is the
quantity demanded of the product Conlan Enterprises sells, P is the price of
that product, M is income, and PR is the price of a related product. Assume
that the income is $10,000, the price of the related good is $40, and Conlan
chooses to set the price of this product at $30. At the prices and income
given above, Conlan can expect to sell _________units.
◍ All are statistically significant.
Answer: The following linear demand specification is estimated for Conlan
Enterprises, a price-setting firm:Q = a + bP + cM + dPRwhere Q is the
quantity demanded of the product Conlan Enterprises sells, P is the price of
that product, M is income, and PR is the price of a related product. Given
the above, at the 1% level of significance, which estimates are statistically
significant?
◍ d. prefers oranges to peaches..
Answer: If Mary prefers bananas to plums and plums to peaches, but is
indifferent between bananas and oranges, shea. is indifferent between
oranges and plums.b. prefers plums to oranges.c. is indifferent between
oranges and peaches.d. prefers oranges to peaches.
, ◍ •Demand tends to be more elastic:.
Answer: •the larger the number of close substitutes.•if the good is a
luxury.•the more narrowly defined the market.•the longer the time period.
◍ d. shows the relation between the amount of goods consumed and a
consumer's utility..
Answer: A utility functiona. All of the choices are correct.b. shows the
relation between prices and a consumer's utility.c. shows the relation
between income and a consumer's utility.d. shows the relation between the
amount of goods consumed and a consumer's utility.
◍ a. the cost of producing the product..
Answer: Which of the following will NOT affect the elasticity of demand
for a product?a. the cost of producing the product.b. the number of
substitutesc. how long consumers have to adapt to price changes.d. All of
the choices will affect the elasticity of demand for a product.e. the
percentage of the consumer's budget spent on the product.
◍ d. demand is elastic..
Answer: When marginal revenue is positive,a. decreasing price will decrease
total revenue.b. All of the choices are correct.c. marginal revenue is greater
than price.d. demand is elastic.e. both "marginal revenue is greater than
price" and "decreasing price will decrease total revenue".
◍ The price elasticity of demand is computed as.
Answer: the percentage change in the quantity demanded divided by the
percentage change in price.PED = %^Qd / %^P
◍ The midpoint formula is preferable when calculating the price elasticity of
demand because.
Answer: it gives the same answer regardless of the direction of the price
change.((Q2-Q1)/[(Q1+Q2)/2]) / ((P2-P1)/[(P1+P2)/2])
◍ The Variety of Demand Curves.
Answer: •Inelastic Demand•Elastic Demand•Perfectly Inelastic•Perfectly
Elastic•Unit Elastic
