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GMS 402 Final Exam | Questions And Answers Latest {} A+ Graded | 100% Verified
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GMS 402 Final Exam | Questions And Answers Latest {} A+ Graded | 100% Verified
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GMS 402 Final Exam | Questions And Answers Latest {2024- 2025} A+ Graded | 100%Verified
Managerial Economics - The study of how to direct scarce resources in the way that most efficiently
achieves a managerial goal
How to calculate economic profit - = accounting profit - opportunity cost
Basic Principles compromising effective management - -Identifying goals and constraints
-Recognize the nature and importance of profits
-Understand incentives
-Understand markets
-Recognize the time value of money
-Use marginal Analysis
The three rivalries in economic transactions - Consumer - producer rivalry
Consumer - consumer rivalry
Producer - producer rivalry
Which of the following is among the 5 forces that impact the sustainability of industry profits according
to Michael Porter
1. Entry
2. Firm Size
3. Power of Buyers
4. Industry Rivals - 1. Entry
3. Power of Buyers
4. Industry Rivals
, True of false: managerial economics includes the analysis of household decisions making - True
Law of Demand - As price goes up, quantity demanded goes down.
As price goes down, quantity demanded goes up.
Movement along the demand curve is called - change in quantity demanded
A rightward shift in demand:
A leftward shift in demand: - Increases demand
Decreases Demand
What are the demand shifters - Income
Price of related goods
Advertising/Tastes
Population
Consumer Expectations
Normal goods vs inferior goods - Normal good: Good whose demand increases when consumer income
increases
Inferior good: Good whose demand increases as consumer income decreases
"substitute" vs. "complementary" goods - Substitutes goods: when the INCREASE of the price for one
goods increases the demand for the other good
Complement goods: when the REDUCTION of the price of on good increases the demand for another
How does alpha y determine the impact of each variable on the number of units X demanded - 𝛼y > 0 if
good y is a substitute for good x
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