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Worksheets[CA5102] QUIZ 1
Total questions: 15
Worksheet time: 11mins
Your marketing department aims to maximize sales, but the finance department limits the advertising budget. This situation illustrates:
Business Analysis
Goals and Constraints
Incentive Misalignment
Marginal Analysis
A firm earns ₱132,451 in revenue. Its explicit costs amounted to ₱60,334, and the owner also incurred implicit costs that amounted to ₱12,900. What is the accounting profit and economic profit?
Accounting Profit = ₱72,117
Economic Profit = ₱59,342
Accounting Profit = ₱75,234
Economic Profit = ₱59,217
Accounting Profit = ₱72,117
Economic Profit = ₱59,217
Accounting Profit = ₱72,117
Economic Profit = ₱58,334
In comparative statics analysis, what is the expected effect on equilibrium price and quantity when both demand and supply decrease simultaneously?
Price ambiguous, quantity decreases
Price decreases, quantity ambiguous
Price increases, quantity decreases
Price increases, quantity ambiguous
According to Michael Porter’s Five Forces, which scenario increases the bargaining power of buyers?
A highly fragmented customer base buying standardized products
Large buyers purchasing significant volumes of a standardized good
Suppliers offering highly specialized products with no alternatives
New firms facing high entry costs
A positive net present value signifies what?
The present value of costs outweighs the present value of benefits and should be accepted.
The project’s initial investment equals the present value of expected cash inflows.
The project will break even, there is no gain nor loss.
The project is expected to be profitable and should be accepted.
It is a type of good wherein an increase in income leads to a decrease in the demand for that good and vice versa.
Complement Good
Inferior Good
Substitute Good
Normal Good
The demand function is Qd = 12,000 + 3Px - 4Py - 1M + 2A. If Px = 200, Py = 15, M = 10,000, and A = 2,000, how many units are demanded?
6,540 units
5,540 units
7,540 units
8,540 units
If the supply function is Qs = 20 + 4P – 2W and demand is Qd = 60 – 2P, find the equilibrium price and quantity when W = 10.
P = 12, Q = 38
P = 10, Q = 40
P = 11, Q = 36
P = 9, Q = 34
What is the effect of an Excise Tax and Ad Valorem Tax?
Excise Tax increases supply while Ad Valorem Tax decreases supply.
Ad Valorem Tax increases supply while Excise Tax decreases supply.
Both taxes increase supply.
Both taxes decrease supply.
Which of the following would shift the demand curve to the right (increase demand)?
Decrease in consumer income for a normal good
Increase in the price of a substitute good
Decrease in the population size
The government raises income taxes
Given the total benefit function: B(Q) = 100Q − 2Q^2 and total cost function: C(Q) = 20Q. At what level of Q are net benefits maximized?
Q = 10
Q = 15
Q = 20
Q = 25
The demand and supply functions for burgers are: Qd=500−5P and Qs=100+3P. At P = 40, determine whether there is a shortage or surplus, and by how much.
Shortage of 40 units
Surplus of 40 units
Shortage of 80 units
Surplus of 80 units
You will receive ₱50,000 after 8 years. If the interest rate is 12%, what is the present value?
₱39,860
₱38,903
₱39,922
₱38,860
Suppose that the demand and supply functions are as follows: Qd = 600 − 8P and Qs= 200 + 12P. If the market price is ₱25, determine its amount and whether it is a shortage or surplus.
Shortage of 100 units
Surplus of 300 units
Surplus of 100 units
Shortage of 300 units
Suppose the total net benefit and cost functions are: B(Q) = 200Q - 5Q^2 and C(Q) - 33Q. Find the Net Benefit function N(Q).
N(Q)=167Q−5Q^2
N(Q)=233Q−5Q2^
N(Q)=200Q−38Q^2
N(Q)=167Q−Q^2
