#1
Which of the following is a key component in firm decision making?
Subjective intuition
Random guesswork
Systematic analysis
Uninformed decision-making
#2
What does the term 'profit maximization' refer to in economics?
Maximizing revenue
Minimizing costs
Maximizing the difference between revenue and costs
Minimizing profit margins
#3
What is the formula for calculating total revenue?
Total Revenue = Price × Quantity Sold
Total Revenue = Price - Quantity Sold
Total Revenue = Quantity Sold / Price
Total Revenue = Quantity Sold + Price
#4
What does the term 'marginal cost' represent in economics?
The additional cost of producing one more unit of output
The total cost of producing all units of output
The cost of fixed inputs in production
The average cost per unit of output
#5
What is the primary objective of a cost-benefit analysis?
To minimize costs
To maximize benefits
To maximize costs
To minimize benefits
#6
Which of the following is NOT a component of the total cost?
Fixed costs
Variable costs
Marginal costs
Total costs include all of the above
#7
In cost-volume-profit analysis, what does the term 'break-even point' represent?
The point at which total revenue equals total cost
The point at which total revenue exceeds total cost
The point at which total revenue is less than total cost
The point at which total cost equals zero
#8
Which of the following is NOT a characteristic of perfect competition?
Many buyers and sellers
Homogeneous products
Barriers to entry
Perfect information
#9
Which of the following is a characteristic of a perfectly competitive market?
Product differentiation
Barriers to entry
Price setting power of individual firms
High level of market transparency
#10
Which of the following is an example of a fixed cost for a manufacturing firm?
Raw materials
Labor wages
Rent for factory space
Packaging costs
#11
What is the formula for calculating economic profit?
Economic Profit = Total Revenue - Total Cost
Economic Profit = Total Revenue / Total Cost
Economic Profit = Total Cost - Total Revenue
Economic Profit = Total Cost / Total Revenue
#12
Which of the following is NOT a type of market structure?
Monopoly
Oligopoly
Perfect competition
Monopsony
#13
What is the primary goal of managerial decision-making in firms?
Maximizing shareholder wealth
Maximizing revenue
Minimizing costs
Maximizing employee satisfaction
#14
In a monopolistic market, how does a firm determine its profit-maximizing level of output?
By setting price equal to marginal cost
By producing where marginal revenue equals marginal cost
By producing where average revenue equals average total cost
By producing where total revenue equals total cost
#15
In a profit-maximizing firm, what is the relationship between marginal cost (MC) and marginal revenue (MR) at the optimal output level?
MC > MR
MC < MR
MC = MR
MC is unrelated to MR
#16
What is the primary assumption of the neoclassical economic theory regarding firm behavior?
Firms seek to maximize profits
Firms aim to minimize costs
Firms operate with perfect information
Firms do not seek to maximize profits
#17
Which of the following is a characteristic of a monopoly market structure?
Many sellers
Homogeneous products
High barriers to entry
Perfect competition
#18
What is the relationship between marginal product of labor (MPL) and total product of labor (TPL)?
MPL = TPL
MPL > TPL
MPL < TPL
There is no relationship between MPL and TPL