MBA 851 MANAGERIAL ECONOMICS Exam Bundle (Graded A) Updated 2023

Negative Externality - ANSWER-Cost borne by parties who are not involved in the production or consumption of a good Positive Externality - ANSWER-Benefit gained by parties who are not involved in the production or consumption of a good Social Marginal Cost - ANSWER-the added cost of covering t...

Manager - ANSWER-person who directs resources to achieve a stated goal Economics - ANSWER-the science of making decisions in the presence of scarce resources Resources - ANSWER-anything used to produce a good or service Managerial Economics - ANSWER-study of how direct scarce resources in t...

Oligopoly - ANSWER-a market dominated by a small number of firms, whose actions, directly affect one another's profits, making the fates of the firms interdependent The four-firm concentration ratio - ANSWER-the percentage of sales accounted for by the top four firms in a market or industry T...

Strategy (definition) - A game plan for getting a corporation where it wants to be. Strategy is about being different and distinctive. Examples of Corporate Strategies - 1. Southwest - low cost, no seat assignment, 2 free checked bags, no cancellation fees, no booking agents, no meals 2. Enterpr...

production function - ANSWER-function that defines maximum output produced in given set of inputs production function formula - ANSWER-Q = F (K,L) K - ANSWER-Capital L - ANSWER-Labor short run - ANSWER-time frame, some factors of production fixed, really for labor long run - ANSWER-ti...

Irene's Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie's Ice Cream. If it enters the market, Mattie's can either accommodate him and share his 10 million in profits equally with Irene or fight him and cause a 5 million loss for each in a price ...

game theory - ANSWER-aid to decision making when agents' payoffs, depends on the actions taken by other players simultaneous-move game - ANSWER-makes decision without the knowledge of the other players decisions sequential-move game - ANSWER-makes moves after observing the other player's mov...

Economics - ANSWER-The study of decision-making in the presence of scarcity Managerial Economics - ANSWER-The application of economic analysis to managerial decision-making Managers - ANSWER-Make economic decisions by allocation the scarce resources at their disposal. Must understand behavior ...

Managerial economics focuses on the types of choices - ANSWER-1) Identifying problems and opportunities 2) Analyzing alternatives from which choices can be made 3) Making choices that are best from the standpoint of the firm or organization Opportunity cost - ANSWER-is the cost measured by the ...

economics - ANSWER-the study of decision-making in the presence of scarcity managerial economics - ANSWER-the application of economic analysis to managerial decision making marginal reasoning - ANSWER-considering the effect of a small change Examples of tradeoffs - ANSWER-how to produce wh...

Managerial economics - ANSWER-study of how to direct scare resources in the way that most efficiently achieves a managerial goal MICROECONOMICS tends to be more _______, while MANAGERIAL ECONOMICS is largely ________. - ANSWER-descriptive, prescriptive ("should") How has managerial economics...