Podcast
Questions and Answers
Which of the following is true about the relationship between price and product quality?
Which of the following is true about the relationship between price and product quality?
- Consumers perceive products with desirable features and characteristics to have great value, even if they are relatively inexpensive (correct)
- Products and brands that customers perceive to be of high quality are less likely to survive in a competitive marketplace
- Price is not a factor for convenience
- Attaining a high level of product quality is generally less expensive
What is marginal cost (MC)?
What is marginal cost (MC)?
- The sum of the average fixed cost and the average variable cost
- The change in total revenue resulting from the sale of an additional unit
- The extra cost incurred by producing one more unit of a product (correct)
- The cost that does not vary with changes in the number of units produced or sold
What is the key factor in determining the optimal production level for a firm?
What is the key factor in determining the optimal production level for a firm?
- Marginal cost is equal to marginal revenue (correct)
- Marginal cost is less than marginal revenue
- Marginal cost is not a factor in determining the optimal production level
- Marginal cost is greater than marginal revenue
What can marginal analysis be used for in business decision-making?
What can marginal analysis be used for in business decision-making?
Why is understanding the relationship between demand, cost, and profit important for businesses?
Why is understanding the relationship between demand, cost, and profit important for businesses?
True or false: Attaining a high level of product quality is generally more expensive, but products and brands that customers perceive to be of high quality are more likely to survive in a competitive marketplace.
True or false: Attaining a high level of product quality is generally more expensive, but products and brands that customers perceive to be of high quality are more likely to survive in a competitive marketplace.
True or false: Demand curves show that as prices fall, quantity demanded usually rises.
True or false: Demand curves show that as prices fall, quantity demanded usually rises.
True or false: Marginal cost (MC) is the extra cost incurred by producing one more unit of a product, and marginal revenue (MR) is the change in total revenue resulting from the sale of an additional unit.
True or false: Marginal cost (MC) is the extra cost incurred by producing one more unit of a product, and marginal revenue (MR) is the change in total revenue resulting from the sale of an additional unit.
Marginal cost (MC) is the extra cost incurred by producing one more unit of a product, and marginal revenue (MR) is the change in total revenue resulting from the sale of an additional unit. When a firm increases production, marginal costs will ______ as variable costs increase. However, for each additional unit sold, marginal revenue will ______.
Marginal cost (MC) is the extra cost incurred by producing one more unit of a product, and marginal revenue (MR) is the change in total revenue resulting from the sale of an additional unit. When a firm increases production, marginal costs will ______ as variable costs increase. However, for each additional unit sold, marginal revenue will ______.
The key is to find the level of production where marginal revenue is greater than marginal cost, as these are the units that will generate a ______. Once the optimal production level is established, a firm's optimal revenue and ______ can be determined.
The key is to find the level of production where marginal revenue is greater than marginal cost, as these are the units that will generate a ______. Once the optimal production level is established, a firm's optimal revenue and ______ can be determined.
The marginal analysis process can be used to make decisions about a variety of business issues, such as ______, production, and inventory management. For example, if a firm is considering increasing prices, it can use marginal analysis to determine the optimal ______ that will maximize revenue and profit.
The marginal analysis process can be used to make decisions about a variety of business issues, such as ______, production, and inventory management. For example, if a firm is considering increasing prices, it can use marginal analysis to determine the optimal ______ that will maximize revenue and profit.
What is the relationship between price and product quality?
What is the relationship between price and product quality?
Why is understanding the relationship between demand, cost, and profit important for businesses?
Why is understanding the relationship between demand, cost, and profit important for businesses?
What is marginal analysis and how can it be used in business decision-making?
What is marginal analysis and how can it be used in business decision-making?
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