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Eco 550 final exam

09/01/2021 Client: saad24vbs Deadline: 10 Days

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


2. The short-run cost function is:


3. Theoretically, in a long-run cost function:


4. Evidence from empirical studies of long-run cost-output relationships lends support to the:


5. In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by:


6. 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:


7. Buyers anticipate that the temporary warehouse seller of unbranded computer equipment will


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


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


10. A firm in pure competition would shut down when:


11. Asset specificity is largest when


12. Uncertainty includes all of the following except ____.


13. Experience goods are products or services


14. Declining cost industries


15. Of the following, which is not an economic rationale for public utility regulation?


16. ____ 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.


17. The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:


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


19. 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:


20. A cartel is a situation where firms in the industry


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


22. Which of the following is an example of an oligopolistic market structure?


23. Even ideal cartels tend to be unstable because


24. In a kinked demand market, whenever one firm decides to lower its price,




25. Some industries that have rigid prices. In those industries, we tend to

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