MANAGERIAL ECONOMICS EXAM PDF | DOWNLOAD SOLVED EXAM PAPERS

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1. A business owner attains a bank loan to purchase a new delivery truck for the business, but they use the funds to take a vacation to Australia. Which of the following terms describes the proble... m with this situation? A . Adverse selection B . Moral hazard C . Both moral hazard and adverse selection D . There is not a problem with this situation 5 points QUE ST ION 2 1. The prospects for success facing your startup are risky: there is a 0.5 probability that you lose $1 million, 0.2 probability that you break even, and 0.3 probability that you make $5 million. What is the expected return from the startup? A . Lose $1 million B . Break even C . Gain $1 million D . Gain $1.5 million 5 points QUE ST ION 3 1. Which of the following statements is NOT true? A . Common value auctions are subject to the winners curse B . The outcomes from Vickrey auctions are identical to first-price sealed bid auctions C . Oral auctions are also second-price auctions D . English auctions are also known as oral auctions 5 points QUE ST ION 4 1. Which group is offered the lower price under a price discrimination scheme? A . Inelastic demand group B . Elastic demand group This study source was downloaded by 100000853497421 from CourseHero.com on 10-28-2022 05:36:30 GMT -05:00 https://www.coursehero.com/file/82050922/managerial-economics-examdocx/ 5 points QUE ST ION 5 1. Which of the following factor does NOT contribute to higher rivalry in a market? A . Large number of competitors B . Low switching costs for buyers C . High fixed cost [Show More]

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