ECO 550 final exam part 1

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:

Which of the following is not an assumption of the linear breakeven model:

Theoretically, in a long-run cost function:

A ____ total cost function implies that marginal costs ____ as output is increased.

The short-run cost function is:

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.

Asset specificity is largest when

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

Experience goods are products or services

All of the following are mechanisms which reduce the adverse selection problem except ____.

The main difference between perfect competition and monopolistic competition is:

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

The problems of asymmetric information exchange arise ultimately because

Regulatory agencies engage in all of the following activities except _______.

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:

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

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

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.

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

A(n) ____ is characterized by a relatively small number of firms producing a product.

Even ideal cartels tend to be unstable because

If a cartel seeks to maximize profits, the market share (or quota) for each firm should be set at a level such that the ____ of all firms is identical.

“Conscious parallelism of action” among oligopolistic firms is an example of ____.

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