#1
In the context of decision-making, what does the term 'opportunity cost' refer to?
The cost of resources already incurred
The value of the best alternative forgone
The total cost of production
The variable cost of production
#2
Which type of cost changes with the level of output or production?
Fixed cost
Sunk cost
Variable cost
Opportunity cost
#3
Which cost remains constant per unit of output in the short run in managerial economics?
Variable cost
Sunk cost
Fixed cost
Opportunity cost
#4
Which of the following is a characteristic of perfect competition in managerial economics?
Few sellers in the market
Product differentiation
Price taker behavior
Barriers to entry
#5
In the context of managerial economics, what does the term 'sunk cost' refer to?
Future costs that can be avoided
Irrecoverable costs incurred in the past
Variable costs
Fixed costs
#6
Which of the following is a characteristic of a monopoly market structure in managerial economics?
Many sellers offering identical products
No barriers to entry
Single seller dominating the market
Perfect information among buyers and sellers
#7
What does the term 'marginal utility' refer to in managerial economics?
The additional satisfaction gained from consuming one more unit of a good
The total satisfaction gained from consuming a good
The average satisfaction gained from consuming a good
The opportunity cost of consuming a good
#8
Which decision-making approach involves making choices based on intuition, judgment, and experience rather than quantitative analysis?
Analytical approach
Intuitive approach
Optimization approach
Rational approach
#9
Which decision-making tool involves considering the potential outcomes of various decision alternatives in managerial economics?
Regression analysis
Game theory
Break-even analysis
Elasticity analysis
#10
What is the primary goal of profit maximization in managerial economics?
To increase market share
To achieve social welfare
To increase sales revenue
To maximize the difference between total revenue and total cost
#11
What is the relationship between marginal cost (MC) and marginal revenue (MR) at the profit-maximizing level of output in a perfectly competitive market?
MC = MR
MC > MR
MC < MR
MC is unrelated to MR
#12
What is the purpose of sensitivity analysis in decision-making?
To analyze the impact of changes in key variables on decision outcomes
To identify the fixed costs associated with a decision
To determine the opportunity cost of a decision
To evaluate the historical performance of a decision
#13
In decision-making, what is the role of a decision tree?
To represent the sequential steps of a decision process
To calculate total cost
To analyze market demand
To determine fixed costs