ECON EXAM 3 QUESTIONS Competitive Supply A perfectly competitive firm maximizes profit by producing the quantity at which: MR = MC. Consider a perfectly competitive firm in the short run. Assume the firm produces the profit-maximizing output and that it earns economic profits. At the profit-maximizing output‚ all of the following are correct except: price is equal to average total cost. People in the eastern part of Beirut are prevented by border guards from traveling to the western part of
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CATsyllabus.com CAT 1998 Paper Section 1 Direction for questions 1 to 5: A part of each sentence given below has been underlined. You have to select the option that best replaces the underlined part. 1. British Airspace has been focusing on building European links. a. concentrating on creating European links b. pursuing ways of building European connectivity c. stressing on building European links d. focusing on forging European links 2. The appetite of banks for funds was lost under the onslaught
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$10‚000 Utilities $1‚000 Interest on bank loan $10‚000 ________________________________________ Calculate (a)the explicit costs‚ (b) the implicit costs (c) the business profit (d) the economic profit and (e) the normal return on investment in the business. a) Explicit Costs = $45‚000 + $15‚000 + $10‚000 + $1‚000 + $10‚000 = $81‚000 b) Implicit Costs = Opportunity Cost – which is her salary foregone = $25‚000 c)
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1) Discuss the owner-manager conflict within the firm. Provide two real world manifestations of the conflict. Owner-manager conflicts finds it basis on the self-interested behaviors of managers‚ owners and shareholders. Firm managers may have personal goals that conflict with the owner’s goals of maximizing shareholder wealth. Potential conflicts occur when managers seek to maximize their own utility at the expense of the firm’s shareholders. Conflict between owners and managers typically arise
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10% (amounts to $95‚000) cause the seller to adjust the price to $1‚005‚000 and $1‚045‚000. This is above the value placed by the buyer. As such‚ the transaction does not go through. | | | | | * Question 3 1 out of 1 points | | | Economic profits are: Answer | | | | | Selected Answer: | b. [Total Sales Revenue] - [Market Value of all the Resources Employed in the Production Process] | Correct Answer: | b. [Total Sales Revenue] - [Market Value of all the Resources Employed
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transaction cost economics. Some organizations struggle whether or not to outsource the IT division. The company has two choices for any economic activity: going outside to market or perform the activities in-house. In any case‚ the cost of the activity is divided into production costs‚ and transaction costs. Production costs in the case of the in-house division‚ includes hardware and software‚ whereas the transaction cost‚ which are the activities related to implementing the economic activity includes
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(Prof. Alfred Marshall) We can define Nat ional Income as t he collective achievement of a nat ion. In t his way‚ t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley) Nat ional Income is t he basic concept of economic‚ which refers t o t he market value of t he goods and services produced during a part icular year. (Prof. Richard Lipsy) CONCEPTS OF NATIONAL INCOme ----1.GROSS DOMESTIC PRODUct Total value of output (goods and services) produced by the factors
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Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5) | Abnormally high executive compensation Targeted share repurchases Shareholder rights provisions Restricted voting rights Poison pills | 2. (TCO F) Which of the following statements is correct? (Points : 5) | The MIRR and NPV decision criteria can never conflict. The IRR method can never be subject to the multiple IRR problem‚ while
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ACCOUNTING 569 MIDTERM 1 FALL 1995 NAME ______________________ ID # I. 15 Points 1. Otis Corp. has the following data: Selling price $50/unit Variable manufacturing costs $20/unit Fixed costs: Manufacturing $100‚000 Selling and admin. $ 50‚000 a.(3 points) The breakeven point is: b.(3 points) Given a volume of 15‚000 units‚ operating leverage is: c.(4 points)
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Economics Exam Notes Question 1. (Chapter 31‚ pg759) * Impact of interest rate on spending * Analysis of events which change interest rate in the market * Policies to manage inflation/recession Impact of interest rate on the economy (ripple effect) To lower interest rate | | To increase interest rate | | | | | | Central bank buy securities in open market operations and increases money supply | | Central bank sell securities in open market operations and increases
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