LSUS MBA 701 2 PRACTICE
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ Economic Profit.
Answer: Is Negative when total costs exceed total revenues
◍ Consumer Surplus.
Answer: All of the choices are correct
◍ In markets characterized by monopolistic competition,.
Answer: entry into the market is relatively easy so that profit in the long run
is zero.
◍ A price-setting firm.
Answer: can lower the price of its product and sell more units.
◍ manager.
Answer: someone that directs resources to achieve a goal
◍ When a firm is a price-taking firm,.
Answer: All of the choices are correct
◍ directs the efforts of others, purchases inputs used in the production of the
firms output, directs other decisions like the product price and quality and
construct incentives to induce maximal effort from employees.
Answer: what does a manager do?
◍ Which of the following is NOT one of features characterizing market
structures?.
Answer: the level of capital investment in research and development
◍ economics.
Answer: the science of making decisions in the presence of scarce resources
, ◍ resources.
Answer: anything used to produce a good or service or achieve a goal
◍ Which of the following would decrease the demand for tennis balls?.
Answer: a decrease in average household income when tennis balls are a
normal good
◍ scarcity implies trade offs.
Answer: why are decisions important in economics?
◍ Which of the following will cause a change in quantity supplied?.
Answer: a change in the market price of the good
◍ managerial economics.
Answer: the study of how to direct scare resources in the way that most
efficiently achieves a managerial goal
◍ A risk premium is.
Answer: a measure calculated to reflect the riskiness of future profits.
◍ Use the following demand and supply functions: Demand: Q = 50 − 4 P
Supply: Q = 20 + 2 P If the price is $10, there is a.
Answer: surplus of 30 units
◍ If the market price of a good is $150 and the supply price of the good is $70,
what is the producer surplus if any?.
Answer: $80
◍ In the figure, the equilibrium price and quantity are.
Answer: P = $6 and Q = 300.
◍ how many employees should be hired and how they should be compensated,
how many products to produce and sold at what price, should a firm make or
buy components of products.
Answer: example of managerial accounting
◍ The principal-agent problem arises when.
Answer: both "the principal and the agent have different objectives" and "the
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ Economic Profit.
Answer: Is Negative when total costs exceed total revenues
◍ Consumer Surplus.
Answer: All of the choices are correct
◍ In markets characterized by monopolistic competition,.
Answer: entry into the market is relatively easy so that profit in the long run
is zero.
◍ A price-setting firm.
Answer: can lower the price of its product and sell more units.
◍ manager.
Answer: someone that directs resources to achieve a goal
◍ When a firm is a price-taking firm,.
Answer: All of the choices are correct
◍ directs the efforts of others, purchases inputs used in the production of the
firms output, directs other decisions like the product price and quality and
construct incentives to induce maximal effort from employees.
Answer: what does a manager do?
◍ Which of the following is NOT one of features characterizing market
structures?.
Answer: the level of capital investment in research and development
◍ economics.
Answer: the science of making decisions in the presence of scarce resources
, ◍ resources.
Answer: anything used to produce a good or service or achieve a goal
◍ Which of the following would decrease the demand for tennis balls?.
Answer: a decrease in average household income when tennis balls are a
normal good
◍ scarcity implies trade offs.
Answer: why are decisions important in economics?
◍ Which of the following will cause a change in quantity supplied?.
Answer: a change in the market price of the good
◍ managerial economics.
Answer: the study of how to direct scare resources in the way that most
efficiently achieves a managerial goal
◍ A risk premium is.
Answer: a measure calculated to reflect the riskiness of future profits.
◍ Use the following demand and supply functions: Demand: Q = 50 − 4 P
Supply: Q = 20 + 2 P If the price is $10, there is a.
Answer: surplus of 30 units
◍ If the market price of a good is $150 and the supply price of the good is $70,
what is the producer surplus if any?.
Answer: $80
◍ In the figure, the equilibrium price and quantity are.
Answer: P = $6 and Q = 300.
◍ how many employees should be hired and how they should be compensated,
how many products to produce and sold at what price, should a firm make or
buy components of products.
Answer: example of managerial accounting
◍ The principal-agent problem arises when.
Answer: both "the principal and the agent have different objectives" and "the
