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Managerial Economics June 2020

The document is an examination paper for the course Managerial Economics (MGMT-341) with various sections including matching responses, fill-in-the-blank questions, multiple-choice questions, and comprehensive questions. It covers topics such as fixed and variable costs, scarcity, sales maximization, and market structures. The document outlines specific tasks for students to demonstrate their understanding of economic principles and concepts.

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Tilahun Wami
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4 views

Managerial Economics June 2020

The document is an examination paper for the course Managerial Economics (MGMT-341) with various sections including matching responses, fill-in-the-blank questions, multiple-choice questions, and comprehensive questions. It covers topics such as fixed and variable costs, scarcity, sales maximization, and market structures. The document outlines specific tasks for students to demonstrate their understanding of economic principles and concepts.

Uploaded by

Tilahun Wami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name______________________________Sex______ID No_________Study Center________

Department __________Term _______A. Year_______ Phone N.____


Submission Date: - From 04-11 May/2020GC/Miazia26-Ginbot03/2012EC

Managerial Economics : Course No. (MGMT-341)


PART I: MATCH THE RESPONSES UNDER COLUMN “B” TO THE PREMISES UNDER “A”

Column A Column B

__ 1. Fixed costs A. Dimensions of the


__ 2. Variable costs decision problem
__ 3. Scarcity B. Income elasticity is less
__ 4. Sales maximization than zero
__ 5. Management utility maximization C. Income elasticity is
__ 6. Technology greater than zero
__ 7. Surplus D. Excess supply
__ 8. Normal goods E. Non- price determinants
__ 9. Inferior goods of supply
__ 10. Multiple goals F. Principle agent problem
G. Adequate rate of profit
H. Limited supply
I. Vary without put
J. Not vary with output
PART II: FILL IN THE BLANK SPECES FOR THE FOLLOWING QEUSTION.
1. Maximum revenue is achieved at the output for which marginal revenue is _____________and
own price elasticity of demand is unitary
2. The transformation of raw substances in to other forms that are distinguished by their more
desirable functional location or temporal characteristic is called ________________
3. The law of demand is based upon the principle of _____as well as substitution and income
4. A possible consequence of a specification error is alas. _______________________
5. The response of an out which is analyzed when all inputs all inputs change in the same
proportion is referred to as _________________________
PART III: CHOOSE THE BEST ANSWER AMONG THE ALTERNATIVES AND WRITE THE
LETTER OF YOUR CHOICE ON THE SPACE PROVIDED.
___1. Cost which is measured as the slope of any chord connecting two points on the TVC curve is
A. Incremental costs (IC) B.Marginal cost (MC)C.Overheadcost D.Average variable cost
___2. Price leadership may not be based on differences in
A. Per unit cost B. Plant sizes C.Quality of products D.Market share
___3. Which one of the following is a behavioral characteristics of oligopolistic competition
A. Small number of firm B. Homogeneous or differentiated products
C.Managerial abilities D. Barriers to entry
___4. The shape of one of the following curve to determine whether a market will be populated by a
large number of smaller firms or a smaller number of larger firms or firm of varying sizes
A.MC B.LATC C. AVC D. ATC
___5. The rate which would make its stream of future ne returns just equal to the requires capital
outlay on an investment alternative is
A. Interest rate B. Inflation rate C. Internal rate of return D.Unemployment rate
___6. Which one of the following is false about the long run average total cost ( LATC ) curve

1
Managerial Economics : Course No. (MGMT-341)
Name_______________________________ Sex________ ID No_________Center_______________
A. It is also called an envelope curve
B.It is an idealized representation of production conditions in the long run
C.It contains range of both scale economies and scale diseconomies
D.Its shape is inverted U
___7. Demand at the unitarily elastic point is characterized by
A. Zero marginal revenue B. Negative marginal revenue
C. Positive marginal revenue D. Positive total revenue
___8. If internal rate of return is in excess of the market rate of return then
A. Undertaking any investment is not profitable B.Investment is profitable
C.Cannot be determined whether to invest or not to invest
D.Undermined an investment is indecent of the source of finance
___9. The demand for any good or service is not determined by
A. Incomeof the consumer B.Sates and preferencesC.Input price D.Price of related goods
___10. Which one of the following is false about production in the short run
A. Stages of production for labor and capital are symmetrical
B.Labor is underutilized in stage I
C.Labors marginal productivity diminishes as capitals marginal productivity increases
D.Capitalisover utilizedinstageIII
___11. The revenue poor unit of the product sold by an enterprise is
A. Marginalrevenue B.overaveragerevenue C.total revenue D.Marginal product
___12. market structure which produces both homogeneous and differentiated product is ____
A. oligopolistic competition B.perfect competition C.monopolistic competition D.monopoly
___13. which one of the following is true about a specification error
A. it is indicated by a coefficient of multiple determinations
B.it occurs when important determinants of demand are omitted from a model
C.it may occur when an included variable is raised to a wrong power D. All of these
___14. There slope of any tangent to the tvc curve is
A.AVC B.MP C.MC D.IC
___15. Which one of the following is false about monopolistic competition
A. Large number of small firms B.Sells differentiated products
B.Similar managerial capacities D.Difficult entry and exit
PART IV: COMPREHENSIVEQUESTIONS.
1. List down the four broad categories of price leadership
2. In monopolistic competition chamberlain employed two demand curves what are these two
demand curves
3. Given the demand function by P= 5-0.25Q
a) Derive the total revenue ( TR ) equation
b) Find the average revenue ( AR) equation
c) Derive the marginal revenue ( MR ) equation
d) What is the value of Q for which MR is equal to zero

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