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Eco 550 final exam | Accounting homework help

1. The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____.

2. In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:

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

4).The short-run cost function is:

5). In the short-run for a purely competitive market, a manufacturer will stop production when:

6). In the long-run, firms in a monopolistically competitive industry will

7). A “search good” is:

8). All of the following are true for both competition and monopolistic competition in the long run, except one of them.  Which is it?

9). Regulatory agencies engage in all of the following activities except _______.

10). 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.

11). When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation.

13). 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:

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

15). 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.

16). The existence of a kinked demand curve under oligopoly conditions may result in

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

18). A key to analyzing subgame perfect equilibrium strategy in sequential games is

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

20). In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are credibility-enhancing mechanisms except

21). In a game, a dominated strategy is one where:

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:

22) The following are possible examples of price discrimination, EXCEPT:

23). The optimal mark-up is:  m = -1/ (E+1).  When the mark-up on cookware equals 50%, then demand elasticity (E) for cookware is:

24). To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.

25). Non-redeployable durable assets that are dependent upon unique complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as

26). 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 ____.

27). When manufacturers and distributors establish credible commitments to one another, they often employ

28). Reliant assets are always all of the following except:

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

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

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

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

33). The ____ depicts the risk-return relationship in the market for all securities:

34). Any current outlay that is expected to yield a flow of benefits beyond one year in the future is:

35). In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except:


36). Which of the following would not be classified as a capital expenditure for decision-making purposes?

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