ECO 550 Final Exam MCQ

ECO 550 Final Exam MCQ 

Question 1 

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

Answer: 

Question 2 

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

Question 3 

Theoretically, in a long-run cost function:
Answer

Question 4 

The short-run cost function is:

Answer


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:

Answer


Question 6 

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.

Answer

Question 7 

If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____.

Answer

Question 8 

The problems of asymmetric information exchange arise ultimately because

Answer

Question 9 

Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it’s declining. The likely reason for the declining price for long distance service is:
Answer