econonmMicroeconomics Review Quiz Test 2 1. When is marginal utility equal to zero? A. When TU is zero. B. When MU is at its maximum. C. When TU is at its maximum. D. When MU is at its minimum. The following table shows Mia ’s $ marginal utility for litres of soya milk: 2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1‚ what is the maximum quantity that Mia might purchase? A. 0. B. 4 litres
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J370 Fall 2013 Practice Questions for Exam #1 IMPORTANT NOTES: 1-These questions are only intended to illustrate the kind/type of questions that will be on your examination. They are not intended to tell you the topics covered‚ but only to give you practice with the kinds of questions you will encounter. To prepare for the examination you need to be familiar with the topics covered in lecture and those discussed in the textbook. 2-There are 50 multiple choice questions on Exam 1. Forty-five
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be termed as negligible. Wal-Mart SWOT Analysis. Strengths - Wal-Mart is a powerful retail brand and perceived by customers to offer lowest prices and thereby value for money. Weaknesses – Due to the huge scale of operation it is possible that Wal-Mart may experience diseconomies of scale. Opportunities – To establish dominance in European markets and Asian markets like Japan and China. Threats – Since Wal-Mart is the largest company in the world it is subject to political pressures as well
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Master of Business Administration- MBA Semester 1 MB0042 – Managerial Economics - 4 Credits (Book ID: B 1625 ) Assignment Set -1 (60 marks) Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions. Q1. Discuss profit maximising model in detail. 10 marks(350-400 words) Answer : Profit maximization is the rational behaviour of equilibrium assumption. Any firm which aiming at profit maximization model; will go increasing its output till it reaches maximum profit output
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Copyright: Peter B. Grubenmann Why do People or Nations Trade Countries engage in international trade for two basic reasons: – They are different from each other in terms of climate‚ land‚ capital‚ labor‚ and technology. – They try to achieve scale economies in production. The Ricardian model‚ developed by English Economist David Ricardo (1772 – 1832)‚ tries to explain why Nations trade. Copyright: Peter B. Grubenmann Why do People or Nations Trade Ricardo’s theory is based on technological
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tailor-made C) off-the-shelf with adaptation D) made-to-order Answer: A Page Ref: 235 Difficulty: Easy AACSB: Use of IT Study Question: Study Question 1 5) The bigger the system and the longer the project‚ ________. A) the lesser are the diseconomies of scale B) the more the requirements change C) the greater is the average contribution per worker D) the easier the task of scheduling becomes Answer: B Page Ref: 236-237 Difficulty: Moderate AACSB: Use of IT Study Question: Study Question 2 6)
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Role of consumers: - consumers: all individ.s in ec. that consume goods and services to satisfy needs and wants - consumer sovereignty: refers to the fact that patterns of consumers spending determine patterns of production. Through spending dec. consumers express their preferences. Factors influencing individual consumer choice: Income: disposable income – after tax (main determinant on consumer spending) More income‚ more demand for good and services But APS
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total cost minimized? At what point is average variable cost minimized? Chapter 6 Technical Question 3 Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economics of scale and a wide range of output over which long-run average cost is constant;
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predatory pricing and force rivals out of business‚ this will reduce competition even further. Also‚ if firms get too big they may suffer from diseconomies of scale which leads to higher average costs. However‚ an increase in the concentration ratio is not necessarily a bad thing. Firstly‚ if firms increase in size they may be able to benefit from economies of scale‚ causing lower average costs. This is likely to occur in industries with high fixed costs and scope for specialization. Another effect from
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factor ratings and location ratings? How are these useful in facility location planning? 11. What is meant by the capacity of a facility? In what ways can the capacity of a facility be measured? 12. Define the terms “economies of scale”‚ “diseconomies of scale” and “economies of scope”? 13. Bring out the comparison between product layout and process layout. 14. What is economic order quantity (EOQ)? Explain the EOQ model of inventory with its simplifying assumptions? 15. Discuss the
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