Econ 528 - Study guides, Class notes & Summaries

University of Louisiana, Lafayette - ECON 528 Final Exam

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays a.) diminishing returns b.) economies of scale c.) diseconomies of scale d.) declining fixed costs correct answers b. ) economies of scale The long-run average cost curve shows A) the lowest average cost of producing every level of output in the long run. B) where the most profitable level of output occurs. C) the average cost of producing where diminishing returns are not prese...

Managerial economics Select one: a. explains which products consumers will buy. b. describes how pay for managers is set. c. helps managers make decisions in the face of scarcity. d. ensures managers always make good decisions. The correct answer is: helps managers make decisions in the face of scarcity. Economic costs of production differ from accounting costs in that Select one: a. accounting costs are always larger than economic cost. b. economic costs include expenditures for hired...

Value= correct answers =sum(t=1...n)((TRt)-TCt) / (1+i)t where t = time period / # of years i = discount rate = current interest rate firm value is maximized when: correct answers total revenue is maximized total cost for a given output is minimized total cost = correct answers average cost x quantity produced AC x Q Minimizing average cost also minimizes correct answers total cost for a given output Minimizing average cost also maximizes correct answers firm value Mi...

ECON 528 Final Exam Questions And Answers 2024

According to the profit-maximization goal, the firm should attempt to maximize short-run profits since there is too much uncertainty associated with long-run profits. correct answers . False If Melissa owns a software company that incurs no fixed costs, then correct answers her total cost equals her total variable cost In the short run, a firm cannot change the amount of capital it uses. Therefore the cost of capital is a correct answers fixed cost. Because the amount of labor a firm em...

The best definition of economics is: A) how goods and services are produced. B) how choices are made under conditions of scarcity. C) how businesses maximize profits. D) how money is used. correct answers B) how choices are made under conditions of scarcity Managerial economics is best defined as the economic study of: A) how businesses can decide on the best use of scarce resources. B) how businesses can make the most profits. C) how businesses can sell the most products. D) how busi...

Relative to a perfectly competitive market, a monopoly results in: a. a gain in producer surplus equal to the loss in consumer surplus. b. a gain in producer surplus less than the loss in consumer surplus. c. greater economic efficiency. d. a gain in producer surplus equal to the gain in consumer surplus. correct answers b. a gain in producer surplus less than the loss in consumer surplus. An oligopolistic industry is characterized by all of the following except a. existence of...

Which of the following is a reason why a firm would experience diseconomies of scale? a. As the size of the firm increases it becomes more difficult to coordinate the operations of its manufacturing plants. b. To finance an increase in the size of its plant a firm must borrow more money or sell more shares of stock. c. As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations. d. As the size of the firm increases, it must o...

Manager correct answers a decision maker: Labor and capital (inputs of production), Inventory (Supply) Economics correct answers a social science that examines conditions of scarcity and how individuals respond to scarcity. (Shortages; time and other resources) Managerial economics correct answers the study of how managers make decisions based off preferences shaped by scarce resources. The goal of managerial economics is to correct answers maximize profit Accounting profits correct ...