Managerial economics - Quiz
- 1. Managerial economics is a branch of economics that applies economic theory and quantitative methods to analyze business and management decisions. It helps business managers make optimal decisions by providing tools and frameworks to understand how firms behave in various market conditions and competitive environments. This discipline focuses on topics such as cost analysis, pricing strategies, demand forecasting, risk management, and decision-making under uncertainty. By utilizing economic principles and techniques, managerial economics assists managers in maximizing profits, minimizing costs, and effectively allocating resources to achieve the long-term goals of the organization.
What is the primary goal of managerial economics?
A) Achieving revenue targets
B) Maximizing profits
C) Maximizing revenue
D) Minimizing costs
- 2. Which of the following is not a characteristic of a perfect competition market structure?
A) Large number of buyers and sellers
B) Homogenous products
C) Perfect information
D) High barriers to entry
- 3. What is the term that describes the additional cost incurred to produce one more unit of a good or service?
A) Marginal cost
B) Average cost
C) Fixed cost
D) Variable cost
- 4. Which of the following is a non-price competition strategy?
A) Price matching
B) Product differentiation
C) Seasonal sales
D) Discounts
- 5. In which market structure are there few sellers offering similar or identical products?
A) Oligopoly
B) Monopoly
C) Monopolistic competition
D) Perfect competition
- 6. What type of market structure is characterized by a single seller with significant control over price?
A) Monopoly
B) Monopolistic competition
C) Oligopoly
D) Perfect competition
- 7. What does the price elasticity of demand measure?
A) Responsiveness of quantity demanded to price changes
B) Government subsidies
C) Cost of production
D) Total revenue
- 8. What does the term 'opportunity cost' refer to in economics?
A) The value of the next best alternative foregone
B) The profit margin
C) The total cost of production
D) The actual cost of producing a good
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