ECO 550 week 11 exam 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:

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

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

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

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.

The short-run cost function is:

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

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:

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

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

A "search good" is:

An "experience good" is one that:

Uncertainty includes all of the following except ____.

____ 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.

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.

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

Declining cost industries

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

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:

A cartel is a situation where firms in the industry

Some market conditions make cartels MORE likely to succeed in collusion.  Which of the following will make collusion more successful?

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

Even ideal cartels tend to be unstable because

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

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.