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MBA 701 Exam with correct answers
Accounting P Supply Shifter - CORRECT ANSWERS ✔✔Technology or government regulations Accounting Profit - CORRECT ANSWERS ✔✔Total amount of money taken in from sales minus the dollar cost of producing goods or services. Changes in Demand - CORRECT ANSWERS ✔✔Represented by a shift of the demand curve Total Revenue - CORRECT ANSWERS ✔✔If elastic, can be increased by decreasing the price Marginal Net Benefits - CORRECT ANSWERS ✔✔Marginal Benefit - Marginal Cost Implicit Costs - CORRECT ANSWERS ✔✔ W in Supply Function - CORRECT ANSWERS ✔✔Price of an input Accounting Profit - CORRECT ANSWERS ✔✔Revenue - Expenses
Bx in Supply Function - CORRECT ANSWERS ✔✔Greater than zero Income Elasticity - CORRECT ANSWERS ✔✔When less than zero, X is a normal good Law of Demand - CORRECT ANSWERS ✔✔Quantity of a good consumers are willing and able to purchase increases as the price falls Excise Tax - CORRECT ANSWERS ✔✔Tax on each unit of output sold. Tax revenue is collected by the supplier Changes in Quantity Supplied - CORRECT ANSWERS ✔✔Represented by a movement along the supply curve Economic Profit - CORRECT ANSWERS ✔✔Difference between total revenue and opportunity cost. Ax in Demand Function - CORRECT ANSWERS ✔✔Less than zero Managerial Control Variable - CORRECT ANSWERS ✔✔Represented as Q Px in Demand Function - CORRECT ANSWERS ✔✔Price of good X
Marginal Cost - CORRECT ANSWERS ✔✔Represented as MC(Q) H in Supply Function - CORRECT ANSWERS ✔✔Value of any other variable affecting Supply Ay in Demand Function - CORRECT ANSWERS ✔✔Greater than 0 if Good Y is a substitute for Good X Supply Shifter - CORRECT ANSWERS ✔✔Number of firms along with entry and exit barriers Law of Demand - CORRECT ANSWERS ✔✔Where price and quantity demanded are inversed Total Revenue - CORRECT ANSWERS ✔✔Maximized when elasticity = 1 Bw in Supply Function - CORRECT ANSWERS ✔✔Less than zero, increasing the input price Role of a Manager - CORRECT ANSWERS ✔✔Construct incentives to induce maximum effort from employees.
Qx^d in Demand Function - CORRECT ANSWERS ✔✔Number of goods demanded Marginal Principle - CORRECT ANSWERS ✔✔Increasing the managerial control variable to the point where marginal benefits equal marginal costs. Changes in Quantity Demanded - CORRECT ANSWERS ✔✔Represented by a movement along the demand curve Profit Maximization - CORRECT ANSWERS ✔✔Maximizing the value of the firm. Price Ceiling - CORRECT ANSWERS ✔✔Maximum legal price a good can be set at Consumer Surplus - CORRECT ANSWERS ✔✔Extra value that consumers derive from goods purchased Market Demand Curve - CORRECT ANSWERS ✔✔Illustrates the relationship between total Quantity and Price per unit of a good consumers are willing & able to purchase Changes in Quantity Supplied - CORRECT ANSWERS ✔✔Occurs only when Price is changed.
Total Expenditure - CORRECT ANSWERS ✔✔Per-unit market price multiplied by the number of units consumer M in Demand Function - CORRECT ANSWERS ✔✔Income Equilibrium - CORRECT ANSWERS ✔✔When there is no shortage or surplus in the market Marginal Net Benefits - CORRECT ANSWERS ✔✔Represented as MNB(Q) Comparative Static Analysis - CORRECT ANSWERS ✔✔When one equilibrium movement moves to another If Elasticity < 1 - CORRECT ANSWERS ✔✔Inelastic Total Benefit - CORRECT ANSWERS ✔✔Represented as B(Q) Elasticity - CORRECT ANSWERS ✔✔Measure of the responsiveness that one variable changes in another variable Supply Shifter - CORRECT ANSWERS ✔✔Product substitutes
Producer Surplus - CORRECT ANSWERS ✔✔Amount producers receive in excess to produce certain goods Ad Valorem Tax - CORRECT ANSWERS ✔✔Percentage based tax Law of Supply - CORRECT ANSWERS ✔✔When the price of a good falls, the quantity supplied rises, holding all other factors constant. Total Cost - CORRECT ANSWERS ✔✔Represented as C(Q) Px in Supply Function - CORRECT ANSWERS ✔✔Price of Good X Marginal Benefit - CORRECT ANSWERS ✔✔Represented as MB(Q) Total Consumer Value - CORRECT ANSWERS ✔✔Sum of the maximum amount a consumer is willing to pay at different quantities Income Elasticity - CORRECT ANSWERS ✔✔If greater than zero, X is an inferior good Price Floor - CORRECT ANSWERS ✔✔Minimum legal price that a good can be set at Changes in Supply - CORRECT ANSWERS ✔✔Occurs when changing factors other than price
