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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 32)

Page 32 of 118
PDF with 468 Questions

Globalization will have all the following effects on businesses except one.
Which ONE is the exception?

  1. Access to cheaper sources of supply in emerging economies
  2. Increased competition on world markets for manufactured goods
  3. Decreased international transportation and communications costs
  4. The ability to shift production to low cost locations

Answer(s): C



i-Songs is about to launch a service that sells downloaded music and video files. Downloads have MC = 0 .
Which ONE of the following would maximize i-Songs' profits?

  1. Sell as many downloads as possible
  2. Increase download sales to the point where price elasticity of demand = 1
  3. Produce add- ons that have a marginal cost in order to charge a price
  4. Do not produce in order to avoid losses

Answer(s): B



RST plc wishes to maximize its profits. At present it is producing where MC is less than MR.
Which ONE of the following would NOT be good advice for RST plc?

  1. Reduce output
  2. Advertise the product to increase demand
  3. Cut fixed costs
  4. Produce a higher output

Answer(s): A



A business can always raise its profits or reduce its losses by increasing output

  1. providing total revenue rises as a result
  2. if it is operating on the downward sloping part of its average cost curve
  3. providing total revenue rises faster than total variable costs
  4. if it is operating on the upward sloping part of its total revenue curve

Answer(s): C



Page 32 of 118



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