MANAGERIAL ECON FINALS

makes use of economic theory and concepts and helps in formulating logical managerial decisions. 

Managerial Economics is useful wherever there are scarce resources and it helps to ensure that managers make effective and efficient decisions concerning customers, suppliers, competitors as well as within an organization.

• TRUE

• FALSE

It is a decision means the sacrifice of alternatives required by that decision.

If there are no sacrifices, there is no cost.

A competition in which a company considers all companies making the same product or class of products as its competitors is known as an_____

states that there is an inverse relationship between quantity demanded of a commodity and its price, other factors being constant.

is a diagrammatic representation of Demand Schedule.

It is a graphical representation of price-quantity relationship.

state that as an individual consumes more and more units of a commodity, the utility derived from it goes on decreasing.

• LAW OF DIMINISHING MARGINAL UTILITY

• LAW OF SUPPLY

• LAW OF DEMAND

• LAW OF ECONOMICS

If a manager wants to DECREASE the price of the product due to increase in cost of production, he should analyze the price elasticity of demand for that product so that price rise is not followed by substantial fall in the demand of the product. It is the application of demand analysis to the real world situation.

• TRUE

• FALSE

A person who directs resources to achieve a stated goal

• TOP MANAGEMENT

• HUMAN RESOURCE PERSON

• MANAGER

• PERSONNEL

Total revenue minus total opportunity cost.