ECON 550 Final Exam Part 2
• Question 1
4 out of 4 points
To trust a potential cooperator until the first defection and then never cooperate thereafter is
Answer
• Question 2
4 out of 4 points
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ECON 550 Final Exam Part 2
• Question 1
4 out of 4 points
To trust a potential cooperator until the first defection and then never cooperate thereafter is
Answer
• Question 2
4 out of 4 points
The Prisoner’s Dilemma involves two spies who are held in separate soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)?
Answer
• Question 3
4 out of 4 points
Cooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following except
Answer
• Question 4
4 out of 4 points
If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped
Answer
• Question 5
4 out of 4 points
Non-cooperative sequential games can incorporate all the following features except
Answer
• Question 6
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
Answer
• Question 7
4 out of 4 points
The following are possible examples of price discrimination, EXCEPT:
Answer
• Question 8
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.
Answer
• Question 9
4 out of 4 points
Third-degree price discrimination exists whenever:
Answer
• Question 10
4 out of 4 points
____ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied.
Answer
• Question 11
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 ____.
Answer
• Question 12
4 out of 4 points
Non-redeployable durable assets that are dependent upon unique complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as
Answer
• Question 13
4 out of 4 points
Which of the following are not approaches to resolving the principal-agent problem?
Answer
• Question 14
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
Answer
• Question 15
4 out of 4 points
Which of the following is not among the functions of contract?
Answer
• Question 16
4 out of 4 points
The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____.
Answer
• Question 17
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
Answer
• 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.
Answer
• Question 19
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.
Answer
• 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.
Answer
• Question 21
4 out of 4 points
In the constant-growth dividend valuation model, the required rate of return on common stock (i.e., cost of equity capital) can be shown to be equal to the sum of the dividend yield plus the ____.
Answer
• Question 22
4 out of 4 points
In cost-effectiveness analysis, constant cost studies:
Answer
• Question 23
4 out of 4 points
The decision by the Municipal Transit Authority to either refurbish existing buses, buy new large buses, or to supplement the existing fleet with mini-buses is an example of:
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• Question 24
4 out of 4 points
The ____ method assumes that the cash flows over the life of the project are reinvested at the ____.
Answer
• Question 25
4 out of 4 points
Which of the following items is (are) not considered as part of the net investment calculation?
Answer
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