29 Dec Evidence from empirical

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.

ECO550 Final Part 2 Latest 2017 August all correct

Question 1

4 out of 4 points

Consider the game known as the Prisoner’s Dilemma. What’s the dilemma?

Question 2

4 out of 4 points

Cooperation in repeated prisoner’s dilemma situations seems to be enhanced by all of the following except

Question 3

4 out of 4 points

Credibility in threats and commitments in sequential games is based on

Question 4

4 out of 4 points

When there is no Equilibrium (or no Nash Equilibrium), we expect that:

Question 5

4 out of 4 points

Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when

Question 6

4 out of 4 points

Which of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?

Question 7

4 out of 4 points

Third-degree price discrimination exists whenever:

Question 8

4 out of 4 points

Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting

Question 9

4 out of 4 points

The segmenting of customers into several small groups such as household, institutional, commercial, and industrial users, and establishing a different rate schedule for each group is known as:

Question 10

4 out of 4 points

____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm.

Question 11

4 out of 4 points

When someone contracts to do a task but fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a

Question 12

4 out of 4 points

Governance mechanisms are designed

Question 13

4 out of 4 points

Which of the following is not among the functions of contract?

Question 14

4 out of 4 points

When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____.

Question 15

4 out of 4 points

When borrowers who do not intend to repay are able to hide their bad credit histories, a lender’s well-intentioned borrowers should

Question 16

4 out of 4 points

The ____ is equal to the some of the squares of the market shares of all the firms in an industry.

Question 17

4 out of 4 points

The antitrust laws regulate all of the following business decisions except ____.

Question 18

4 out of 4 points

The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.

Question 19

4 out of 4 points

The sentiment for increased deregulation in the late 1970’s and early 1980’s has been felt most significantly in the price regulation of

Question 20

4 out of 4 points

____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.

Question 21

4 out of 4 points

If the acceptance of Project A makes it impossible to accept Project B, these projects are:

Question 22

4 out of 4 points

The social rate of discount is best approximated by:

Question 23

4 out of 4 points

Which of the following items is (are) not considered as part of the net investment calculation?

Question 24

4 out of 4 points

All of the following except ____ are shortcomings of cost-benefit analysis.

Question 25

4 out of 4 points

In cost-effectiveness analysis, constant cost studies: