Managerial Economics > QUESTIONS & ANSWERS > Managerial Economics Exam Questions with Answers. (All)

Managerial Economics Exam Questions with Answers.

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Economics Correct Answer The study of decision-making in the presence of scarcity Managerial Economics Correct Answer The application of economic analysis to managerial decision-making Managers ... Correct Answer Make economic decisions by allocation the scarce resources at their disposal. Must understand behavior of consumers. workers, other managers, and governments to make good decisions Productions Manager Correct Answer Their objective is normally to achieve a production target at the lowest possible cost. They of course must use the existing factory Human resource managers Correct Answer They design compensation systems to encourage employees to work hard, They have limited resources and employees are already in the firm Marketing Manager Correct Answer must allocate an advertising budget to promote the product most effectively. They have a limited marketing budget of course. the firm's top manager Correct Answer -must coordinate and direct all these activities. Profit Correct Answer = Revenue-Cost CEO Correct Answer Must focus on the bottom line: maximizing profit. The ECO is also concerned with how a firm is positioned in a market relative to its rivals. Maximizing profit is more important than beating a rival. [Show More]

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