ECO 550 Final Exam Part I

ECO 550 Final Exam Part 1 Strayer University

  1. Break-even analysis usually assumes all of the following except:
  2. The short-run cost function is:
  3. George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000. If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year.
  4. The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____.
  5. In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
  6. Theoretically, in a long-run cost function:
  7. In the short-run for a purely competitive market, a manufacturer will stop production when:
  8. The problems of asymmetric information exchange arise ultimately because
  9. What is the profit maximization point for a firm in a purely competitive environment?
  10. The price for used cars is well below the price of new cars of the same general quality. This is an example of:
  11. A firm in pure competition would shut down when:
  12. Buyers anticipate that the temporary warehouse seller of unbranded computer equipment will
  13. Under asymmetric information, 4 out of 4 points
  14. When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation.
  15. ____ as practiced by public utilities is designed to encourage greater usage and therefore spread the fixed costs of the utility’s plant over a larger number of units of output.
  16. The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:
  17. In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale. If price were set equal to marginal cost, then:
  18. Regulatory agencies engage in all of the following activities except _______.
  19. Of the following, which is not an economic rationale for public utility regulation?
  20. Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful?
  21. If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the ____ of all firms is identical.
  22. The existence of a kinked demand curve under oligopoly conditions may result in
  23. A cartel is a situation where firms in the industry
  24. “Conscious parallelism of action” among oligopolistic firms is an example of ____.
  25. Some industries that have rigid prices. In those industries, we tend to
  26. Theoretically, in a long-run cost function:
  27. Evidence from empirical studies of long-run cost-output relationships lends support to the:
  28. n the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
  29. Break-even analysis usually assumes all of the following except:
  30. A ____ total cost function implies that marginal costs ____ as output is increased.
  31. George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000. If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year.
  32. Uncertainty includes all of the following except ____.
  33. In the long-run, firms in a monopolistically competitive industry will
  34. In the short-run for a purely competitive market, a manufacturer will stop production when:
  35. The price for used cars is well below the price of new cars of the same general quality. This is an example of:
  36. Experience goods are products or services
  37. A firm in pure competition would shut down when:
  38. In the purely competitive case, marginal revenue (MR) is equal to:
  39. Declining cost industries
  40. The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:
  41. In the electric power industry, residential customers have relatively ____ demand for electricity compared with large industrial users. But contrary to price discrimination, large industrial users generally are charged ____ rates.
  42. Of the following, which is not an economic rationale for public utility regulation?
  43. In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale. If price were set equal to marginal cost, then:
  44. Regulatory agencies engage in all of the following activities except _______.
  45. A(n) ____ is characterized by a relatively small number of firms producing a product.
  46. Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful?
  47. The existence of a kinked demand curve under oligopoly conditions may result in
  48. Some industries that have rigid prices. In those industries, we tend to
  49. If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the ____ of all firms is identical.
  50. Which of the following is an example of an oligopolistic market structure?
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