Strayer University - All Va Campuses > ECO 550FINAL EXAM, PART 1 > ECO 550FINAL EXAM, PART 1 CHAPTERS 9 THROUGH 12

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FINAL EXAM, PART 1: CHAPTERS 9 THROUGH 12 • Question 1 The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____. Answer •... Question 2 In a study of banking by asset size over time, we can find which asset sizes are tending to become more prominent. The size that is becoming more predominant is presumed to be least cost. This is called: Answer • Question 3 Break-even analysis usually assumes all of the following except: Answer • Question 4 Evidence from empirical studies of long-run cost-output relationships lends support to the: Answer • Question 5 Which of the following is not an assumption of the linear breakeven model: Answer • Question 6 The short-run cost function is: Answer • Question 7 What is the profit maximization point for a firm in a purely competitive environment? Answer • Question 8 Under asymmetric information, Answer • Question 9 The main difference between perfect competition and monopolistic competition is: Answer • Question 10 The problems of asymmetric information exchange arise ultimately because Answer • Question 11 In the purely competitive case, marginal revenue (MR) is equal to: Answer • Question 12 If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____. Answer • Question 13 Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it’s declining. The likely reason for the declining price for long distance service is: Answer • Question 14 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: Answer • Question 15 The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of: Answer • Question 16 Regulatory agencies engage in all of the following activities except _______. Answer • Question 17 ____ 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. Answer • Question 18 Declining cost industries Answer • Question 19 • Question 20 In a kinked demand market, whenever one firm decides to lower its price, Answer • Question 21 Some industries that have rigid prices. In those industries, we tend to Answer • Question 22 “Conscious parallelism of action” among oligopolistic firms is an example of ____. Answer • Question 23 The existence of a kinked demand curve under oligopoly conditions may result in Answer • Question 24 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. Answer • Question 25 Barometric price leadership exists when Answer [Show More]

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