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Managerial EconomicsBUS5421 QUESTION:1[QUESTION BANK ID:14147]TYPE:MULTIPLE CHOICECORRECTSuppose that both the equilibrium price and quantity of golf clubs rise. Which of the following explanationswould best explain this outcome?<< HIDE ANSWERSAA decrease in demand for golf clubs with no change in supplyBAn increase in supply of golf clubs with no change in demandCA decrease in demand for golf clubs and a decrease in the supply of mustardDAn increase in demand for golf clubs with no change in supplyQUESTION:2[QUESTION BANK ID:21939]TYPE:MULTIPLE CHOICECORRECTA yo-yo manufacturer is producing 5,000 yo-yos selling them for $1.50 each. At this level of output, marginal revenue is $1.50. From this information, we can conclude that the yo-yo manufacturer<< HIDE ANSWERSAQUESTION:3[QUESTION BANK ID:71840]TYPE:MULTIPLE CHOICE
CORRECTSuppose a new manufacturing technology results in an expansion in the supply of golf balls in the United States of 15%. If the elasticity of demand of golf balls sold in the U.S. is -0.4, the new equilibrium price willbe<< HIDE ANSWERSQUESTION:4[QUESTION BANK ID:110594]TYPE:MULTIPLE CHOICEINCORRECTHow much of a good will consumers who wish to maximize their net benefit (value less cost) purchase?<< HIDE ANSWERSQUESTION:5[QUESTION BANK ID:88532]TYPE:MULTIPLE CHOICECORRECTWhat is the net present value of a project that requires a $100 investment today and returns $50 at the end of the first year and $80 at the end of the second year? Assume a discount rate of 10%.<< HIDE ANSWERSA$10.52B