ECO550 Final Part 1 Latest 2017 August all correct

Question 1

0 out of 4 points

Evidence from empirical studies of long-run cost-output relationships lends support to the:

Question 2

0 out of 4 points

The short-run cost function is:

Question 3

0 out of 4 points

Which of the following is not an assumption of the linear breakeven model:

Question 4

4 out of 4 points

A ____ total cost function implies that marginal costs ____ as output is increased.

Question 5

4 out of 4 points

Break-even analysis usually assumes all of the following except:

Question 6

4 out of 4 points

In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by:

Question 7

4 out of 4 points

The main difference between perfect competition and monopolistic competition is:

Question 8

4 out of 4 points

Experience goods are products or services

Question 9

4 out of 4 points

Uncertainty includes all of the following except ____.

Question 10

4 out of 4 points

Under asymmetric information,

Question 11

4 out of 4 points

A "search good" is:

Question 12

4 out of 4 points

If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____.

Question 13

4 out of 4 points

The price for used cars is well below the price of new cars of the same general quality. This is an example of:

Question 14

4 out of 4 points

The demand curve facing the firm in ____ is the same as the industry demand curve.

Question 15

4 out of 4 points

Declining cost industries

Question 16

4 out of 4 points

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:

Question 17

4 out of 4 points

The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:

Question 18

4 out of 4 points

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.

Question 19

4 out of 4 points

____ 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.

Question 20

4 out of 4 points

“Conscious parallelism of action” among oligopolistic firms is an example of ____.

Selected Answer:

Question 21

4 out of 4 points

Barometric price leadership exists when

Question 22

4 out of 4 points

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.

Question 23

4 out of 4 points

A(n) ____ is characterized by a relatively small number of firms producing a product.

Question 24

4 out of 4 points

In a kinked demand market, whenever one firm decides to lower its price,

Question 25

4 out of 4 points

In the Cournot duopoly model, each of the two firms, in determining its profit-maximizing price-output level, assumes that the other firm's ____ will not change.