The Basics of Managerial Economics

Question 1

What is the goal of any firm?

Accepted Answer

Maximize profits

Question 2

Profits = TR - TC

Accepted Answer

True

Question 3

Q = α - βP : This represents the...

Accepted Answer

Direct demand function

Question 4

If the actual price is BELOW the equilibrium price, there will be a SURPLUS

Accepted Answer

False

Question 5

In this class, we are concerned with accounting profits.

Accepted Answer

False

Question 6

A firm’s profits are maximized when...

Accepted Answer

MR = MC

Question 7

The more luxurious the product is, the more ______ it is

Accepted Answer

Elastic

Question 8

What is NOT one of the determinants of the Demand function that cause a shift?

Accepted Answer

Technology

Questions 8