Managerial economics seeks to accomplish all of these goals EXCEPT:
a. identify the alternatives
b. select the choice that accomplishes the objective most efficiently
c. take into account the opportunities
d. take into account the likely actions & reactions of rival decision makers
e. all of the above
QUESTION 2The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are unwilling to offer discounts
b. the Vice President does not want to negotiate aggressively enough to maximize profits
c. the sales staff want to negotiate too aggressively
d. the Vice President is more willing to offer discounts to make the sale
QUESTION 3A perfectly inelastic demand curve
a. Is a horizontal curve parallel to the horizontal axis
b. Has an elasticity of demand between 0 and 1
c. Represents the demand curve of a product with no close substitutes
d. None of the above
QUESTION 4Economic profit is defined as the difference between revenue and ____.
a. explicit cost
b. total economic cost
c. implicit cost
d. shareholder wealth
e. none of the above
QUESTION 5The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are too willing to offer discounts
b. the sales staff does not want to negotiate aggressively enough
c. the Vice President wants to negotiate too aggressively
d. the Vice President is more willing to offer discounts to make the sale
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