100 QUESTIONS ECO 550 FINAL EXAM 2014 PART 1 AND PART 2 (2 SETS) UNABLE TO UPLOAD ALL QUESTIONS DUE TO SIZE RESTRICTION - 47937

Solution Posted by
NEEL2103
Solution Detail
Price: $60.00
  • From: ,
  • Posted on: Tue 18 Mar, 2014
  • Request id: None
  • Purchased: 1 time(s)
  • Average Rating: No rating
Request Description

ECO 550 FINAL EXAM PART 1

(BONUS: TWO VERSIONS OF PART 1 POSTED TO MAKE TOTAL OF 50 QUESTIONS FINAL PART 1)



Question 1 

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

Answer 



percentage; sales; percentage; EBIT



unit; sales; unit; EBIT



percentage; EBIT; percentage; sales



unit; EBIT; unit; sales



Question 2 

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

Answer 



variable margin per unit



variable cost ratio



contribution margin per unit



target margin per unit



Question 3 

Theoretically, in a long-run cost function:

Answer 



all inputs are fixed



all inputs are considered variable



some inputs are always fixed



capital and labor are always combined in fixed proportions



Question 4 

The short-run cost function is:

Answer 



where all inputs to the production process are variable



relevant to decisions in which one or more inputs to the production process are fixed



not relevant to optimal pricing and production output decisions



crucial in making optimal investment decisions in new production facilities



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 



regression to the mean analysis.



breakeven analysis.



survivorship analysis.



engineering cost analysis.



a Willie Sutton analysis.



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 



10,000 customers



20,000 customers



30,000 customers



40,000 customers



50,000 customers



Question 7 

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

Answer 



more; decrease; down



more; decrease; up



more; increase; down



more; increase; up



Question 8 

The problems of asymmetric information exchange arise ultimately because

Answer 



one party to the exchange possesses different information than another



one party has more information than another



one party knows nothing



one party cannot independently verify the information of another



information is scarce



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 



Governmental pressure to lower the price



Reduced demand for long distance service



Entry into this industry pushes prices down



Lower price for a barrel of crude oil



Increased cost of providing long distance service



Question 10 

What is the profit maximization point for a firm in a purely competitive environment?

Answer 



The output where P = MC



The output where P < MC



The output where P > MC



The output where MR = MC



The output where AVC < P



Question 11 

In the purely competitive case, marginal revenue (MR) is equal to:

Answer 



cost



profit








 

 

 

 

Solution Description

EXCELLEN

Attachments
FINAL_EXAM_PART_1_ALL_VERSION_ANSWER.docx
FINAL_EXAM_PART...
FINAL_EXAM_PART_2_ALL_VERSION_ANSWER.docx
FINAL_EXAM_PART...