Managerial Economics Test 1 Review – Flashcards

Which of the following did NOT contribute to the high transaction related risks for U.S. potato sales in 1840?

What was a key contribution to the dominance of the family-run small business in 1840?

Matchmakers between manufacturers and sellers are called:

What significant transportation event brought about the first significant growth of the Great Lakes region?

What is throughput?

What mode of long-distance communication first laid the groundwork for today's modern communication forms?

What was the major role of private banks in the early 1800s?

What was one of the first plant/factory types to use the "American System" of manufacturing?

What economics game theory concept is demonstrated by the Erie Canal public works project?

According to the Besanko textbook, what was the most significant development to the evolution of business around time of 1910?

Which of the following led to overbuilding of railroads in the 1860's and 1870's?

What does it mean for a manufacturing firm to vertically integrate?

What significant government infrastructure project led to the development of national stock and commodity markets?

What firm is generally regarded as being the first to extensively use mass production processes?

What caused railway transportation to remain the primary transportation source over trucking until World War II?

What forms of communication was integral to the growth of multistory headquarter buildings?

What caused the market conditions facing the telephone to be uncertain until the 1880's?

Which of the following led to the development of the financial infrastructure pre-1910?

What is the accounting concept inventory turnover as developed by Sears in the late 19th century?

Which of the following government regulations on business conditions did NOT increase around the time 1910?

What was a key factor that aided foreign steel producers in penetrating U.S. markets?

What is a benefit of alliances and joint ventures over mergers and acquisitions?

How was Atlanta been able to grow as a center of commerce despite its poor water and rail connections?

How have late 20th and 21st century communications technologies directly created global markets from products and services?

Which of the following facets of modern financial infrastructure came as a result of deregulation in the 1970s and 1980s?

What is a key issue facing managers of the 2000s with respect to production technology?

Relaxing of government regulation of economic activities occurred during the second half of the 20th century for all of the following EXCEPT:

Which of the following encouraged firms to develop through internal R&D (research and development) rather than through M&A (mergers and acquisitions) in the 20th century?

What is the gaizhi process?

Which of the following is a characteristic of economies of scale?

What is the minimum efficient scale (MES) of production?

Which of the following is generally a way that LBOs (leveraged buyouts) can help a firm realize its potential value?

Which of the following best describes economies of scope?

What measure, that depends on how much of a firm's revenues are attributable to product market activities that have shared technological characteristics, production characteristics, or distribution channels, is used to determine how diversified a firm is at a given time?

Which of the following is not a product specific fixed cost?

What kind of economies come from reductions in cost due to adoption of technology that has high fixed costs, but lower variable costs?

Examining which of the following is broadly considered one of the easiest ways to measure diversifying activity?

What force does Henry Manne indicate constrains the actions of managers so that they stay focused on the goals of the owners

What are the economies of density as referred to in the airline industry?

Which of the following is NOT generally a potential benefit of diversification?

Which of the following benefits of diversification explains the idea that mergers are more likely when there is an expectation of positive changes in market share?

How does carrying inventories contribute to economies of scale?

Which of the following benefits of diversification explains the idea that combining unrelated businesses can allow firms to finance projects through cross-subsidization when they previously were unable to finance the same projects externally?

Which of the following is NOT a reason a supplier might seek to sell in bulk?

How does umbrella branding aid economies of scale and scope?

Which of the following benefits of diversification explains the idea that a firm with many business lines can reduce swings in value because it receives only a small percentage of its revenues from an one of those business lines?

Which of the following practices does NOT contribute to the strategic fit of Southwest Airlines?

What type of research looks at the changes in market valuations in response to the announcement of diversifying acquisitions to assess the success of diversification?

Which of the following is NOT a source of diseconomies of scale at a large firm?

Which of the following benefits of diversification explains the idea that corporate diversification can provide situations where an acquiring firm determines the stock price for firm they intend to acquire is too low?

Why might a large firm actually be at an advantage over a smaller firm with respect to labor?

Which of the following is NOT a way managers generally benefit from acquisitions?

What is the approximate observed median learning curve slope for typical firms?

Why is firm specific learning better in general for an organization?

What institution within a firm must fail on some level for managers to be motivated to acquire another firm for the purposes of increasing their own compensation, shielding themselves against risk, or gaining prominence by running a larger firm?

By satisfying which of the following conditions can shareholders prevent management driven acquisitions?

Suppose the cost of producing a 30 second commercial for television is $100,000. If airtime on the evening news costs $200,000 and is viewed by 5 million people, what is the advertising cost per potential customer?

A firm produces two products, gasoline and plastic. The firm produces x units of gasoline, and y units of plastic. The production technology displays the following costs, TC is the total cost function: TC (x = 0, y = 50) = 100 TC (x = 0, y = 100) = 210 TC (x = 5, y = 0) = 150 TC (x = 10, y = 0) = 320 TC (x = 5, y = 50) = 240 TC (x = 10, y = 100) = 500 Which of the following is true?