Introduction to Managerial Economics

The foremost objective of a Business Organization is ?

• Revenue maximization

• Output maximization

• Utility maximization

• Profit maximization

The manager of a business organization is responsible for ?

• Decision making

• Educating people

• Looking for markets

• Earning social status

Economic Profit of the business organization is obtained by ?

• Adding average revenue

• Subtracting costs

• Adding costs

• Finding gap between TR and TC

The total cost of a business organization is ?

• Sum of explicit costs

• Sum of implicit costs

• Sum of explicit and implicit costs

• Difference of explicit and implicit costs

The break-even point is obtained by ?

• TC - TR > 0

• TC - TR < 0

• TC - TR = 0

• TC + TR = 0

Managerial Economics is based on the principles of ....?

• Macroeconomics

• Monetary Economics

• Microeconomics

• Government Economics

The first order derivative of total cost is ....?

• Average cost

• Average variable cost

• Average fixed cost

• Marginal cost

Total revenue of the firm is obtained by ......?

• MR × Q

• AR × Q

• Sum of AC and MC

• Difference of AC and MC