ECON 550 Final Part 1,Latest complete 100 out of 100 points.

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Econ 550 Final Part 1 • Question 1 Evidence from empirical studies of long-run cost-output relationships lends support to the: • Question 2 Which of the foll... owing is not an assumption of the linear breakeven model: • Question 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. • Question 4 In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as: • Question 5 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: • Question 6 Theoretically, in a long-run cost function: • Question 7 In the long-run, firms in a monopolistically competitive industry will • Question 8 Asset specificity is largest when • Question 9 Experience goods are products or services • Question 10 Under asymmetric information, • Question 11 A firm in pure competition would shut down when: • Question 12 The problems of asymmetric information exchange arise ultimately because • Question 13 All of the following are mechanisms which reduce the adverse selection problem except ____. • Question 14 ____ 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 15 Declining cost industries • Question 16 Regulatory agencies engage in all of the following activities except _______. • Question 17 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 18 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 19 Of the following, which is not an economic rationale for public utility regulation? • Question 20 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. • Question 21 Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful? • Question 22 Barometric price leadership exists when • Question 23 The existence of a kinked demand curve under oligopoly conditions may result in • Question 24 Some industries that have rigid prices. In those industries, we tend to • Question 25 A(n) ____ is characterized by a relatively small number of firms producing a product. [Show More]

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