MBA 5004 Final Exam Answer

Document Content and Description Below

1. A relation known with certainty is called a: a. statistical relation. b. multiple regression. c. deterministic relation. d. simple regression. B_ 2. A direct relation exists between the price ... of one product and the demand for: a. complements. b. substitutes. c. normal goods. d. inferior goods. A A B A _C 3. When MRQ = $25, PX = $200, and MPLX = 8, employment of X: a. is optimal. b. should expand. c. should contract. d. none of these. 4. If the productivity of variable factors is decreasing in the short-run: a. marginal cost must increase as output increases. b. average cost must decrease as output increases. c. average cost must increase as output increases. d. marginal cost must decrease as output increases. 5. Producer surplus is the: a. amount paid to sellers above and beyond the value received by consumers. b. amount paid to sellers above and beyond the required minimum. c. amount paid to sellers. d. cost of production. 6. Nash equilibrium: a. occurs when each player pursues a dominant strategy. b. occurs when each player pursues a secure strategy. c. is precluded when players pursue randomized strategies. d. is not possible in simultaneous-move, one-shot games. 7. When Gillette invests millions of dollars to establish high-quality brand-name recognition with repeat customers, it is involved in a: D A a. one-shot game. b. repeated game of finite duration. c. repeated game of infinite duration. d. simultaneous-move game. 8. In a predatory pricing strategy: a. P < AC b. MR = MC c. P > AVC d. P < MC 9. If profits are normally distributed with a mean of $12 and a standard deviation of $4, there is a 50/50 chance actual profits will exceed: a. $12 b. $8 c. $16 d. $4 A 10. a. b. c. d. Acceptance of investment projects where IRR > MCC: will increase the value of the firm. will decrease the value of the firm. have no impact on the value of the firm. none of these. D_ 11. a. b. c. d. At the socially efficient price-output level: external costs equal zero. marginal social benefit equals marginal private benefit. marginal social cost equals marginal private cost. social marginal benefit equals social marginal cost. A 12. a. b. c. d. When government-run enterprise is sold to the private sector, this process is known as: privatization. liquidation. nationalization. deregulation. A_ 13. a. b. c. d. At the profit-maximizing level of output: marginal profit equals zero. marginal profit is less than average profit. marginal profit exceeds average profit. marginal cost equals average cost. A_ 14. a. b. c. d. Statistical analysis of economic relations focuses on the estimation and interpretation of: sample statistics. population parameters. summary measures. descriptive measures. D 15. a. b. c. d. The quantity of product X supplied can be expected to rise with a fall in [Show More]

Last updated: 2 months ago

Preview 1 out of 8 pages