Strayer University - ECO 550- FINAL EXAM PART 1(ALL CORRECT ANSWERS)

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ECO 550- FINAL EXAM PART 1 • Question 1 4 out of 4 points Theoretically, in a long-run cost function: Answer • Question 2 0 out of 4 points In a study of banki... ng 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 0 out of 4 points Break-even analysis usually assumes all of the following except: Answer • Question 4 0 out of 4 points A ____ total cost function implies that marginal costs ____ as output is increased. Answer • Question 5 4 out of 4 points Evidence from empirical studies of long-run cost-output relationships lends support to the: Answer • Question 6 0 out of 4 points The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____. Answer • Question 7 0 out of 4 points The problems of asymmetric information exchange arise ultimately because Answer • Question 8 4 out of 4 points What is the profit maximization point for a firm in a purely competitive environment? Answer • Question 9 4 out of 4 points In the purely competitive case, marginal revenue (MR) is equal to: Answer • Question 10 4 out of 4 points Buyers anticipate that the temporary warehouse seller of unbranded computer equipment will Answer • Question 11 4 out of 4 points All of the following are mechanisms which reduce the adverse selection problem except ____. Answer • Question 12 4 out of 4 points A "search good" is: Answer • Question 13 4 out of 4 points An "experience good" is one that: Answer • Question 14 4 out of 4 points Declining cost industries Answer • Question 15 4 out of 4 points Of the following, which is not an economic rationale for public utility regulation? Answer • Question 16 4 out of 4 points The demand curve facing the firm in ____ is the same as the industry demand curve. Answer • Question 17 4 out of 4 points Regulatory agencies engage in all of the following activities except _______. Answer • Question 18 4 out of 4 points When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation. Answer • 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. Answer • Question 20 4 out of 4 points Even ideal cartels tend to be unstable because Answer • Question 21 4 out of 4 points Which of the following is an example of an oligopolistic market structure? Answer • Question 22 4 out of 4 points Barometric price leadership exists when Answer • Question 23 4 out of 4 points Some industries that have rigid prices. In those industries, we tend to Answer • Question 24 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. Answer • Question 25 4 out of 4 points In a kinked demand market, whenever one firm decides to lower its price, Answer [Show More]

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