MBA701

MBA 701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE Economics The science of making decisions in the presence of scarce resources. Managerial: making these decisions to best accomplish a managerial goal Resources anything used to produce a good or service or achieve a goal. Decisions are important because... scarcity implies trade-offs 7 Principles of Effective Managerial Decision Making 1.Identify goals and constraints. 2.Recognize the nature and impo...

QUANTITATIVE ANALYSIS - MBA 701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED We should include an interaction variable in a regression model if we believe that the effect of one explanatory variable X1 on the response variable Y depends on the value of another explanatory variable X2. True There are two types of random variables, they are: discrete and continuous If A and B are mutually exclusive events with P(A) = 0.30 and P(B) = 0.40, then the probability that either A or...

MBA 701 MODULE 1 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE Assume coffee and doughnuts are complements. When the price of doughnuts goes up, which of the following will happen to the market for coffee? A. The demand curve for coffee will shift to the right B. The supply curve for coffee will shift to the left C. The equilibrium price for coffee will increase D. The equilibrium quantity of coffee will decrease D. The equilibrium quantity of coffee will de...

MBA 701 - MIDTERM EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE c. Foregone interest of using money that could have been kept in a bank Explicit costs denote input costs that require an outlay of money by the firm. Implicit costs, on the other hand, refer to input costs that do not require an outlay of money by the firm, which are ignored by accountants. An example of implicit costs is the forgone interest income not earned on financial capital used by the fir...

MBA 701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Which of the following will cause a change in quantity supplied? a change in the market price of the good Demand: Qd = 50 − 4 P Supply: Qs = 20 + 2 P If the price is $2, there is a shortage of 18 units. In markets characterized by monopolistic competition, entry into the market is relatively easy so that profit in the long run is zero. When a firm is a price-taking firm raising the price of the product above the ma...

MBA701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE Which of the following is anestimable form of a production function? Q = aK3L3 + bK2L2 A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. In equilibrium, MPL will be 5 times MPK. A cubic specification for a short-run production function is appropriate when th...

MBA 701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both $4: Now suppose the price of good X increases to $12 while the price of good Y remains $4. Utility will be maximized on which indifference curve? II The rate at which a consumer is able to substitute one good for another is determined by the budget line. The demand for heart...

MBA 701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE If the price of a good or service exceeds the equilibrium price, a _____ exists. As a result, price tends to _____. surplus;fall What type of price control will the government impose if it considers the equilibrium price to be too high? Price Celing Other things remaining constant, when demand for a good or service increases, which of the following occur(s)? -Equilibrium quantity is unchanged -Equilibrium ...

MBA 701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS LATEST UPDATE ACCOUNTING P SUPPLY SHIFTER TECHNOLOGY OR GOVERNMENT REGULATIONS ACCOUNTING PROFIT TOTAL AMOUNT OF MONEY TAKEN IN FROM SALES MINUS THE DOLLAR COST OF PRODUCING GOODS OR SERVICES. CHANGES IN DEMAND REPRESENTED BY A SHIFT OF THE DEMAND CURVE TOTAL REVENUE IF ELASTIC, CAN BE INCREASED BY DECREASING THE PRICE MARGINAL NET BENEFITS MARGINAL BENEFIT - MARGINAL COST IMPLICIT COSTS W IN SUPPLY FUNCTION PRICE OF AN I...

MBA701 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ Which of the following is an implicit cost to a firm that produces a good or service? Foregone interest of using money that could have been kept in a bank. Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit fr...