ECO 550 Managerial Economics Final Exam Part 1
Question 1
4 out of 4 points
Evidence from empirical studies of long-run cost-output relationships lends support to the:
Selected
Answer:
hypothesis that total costs increase linearly over some considerable
range of output examined
Correct
Answer: hypothesis that total costs increase linearly over some considerable
range of output examined
Question 2
4 out of 4 points
Theoretically, in a long-run cost function:
Selected
Answer: all inputs are considered
variable
Correct
Answer:
all inputs are considered
variable
Question 3
4 out of 4 points
The short-run cost function is:
Selected
Answer:
relevant to decisions in which one or more inputs to the production
process are fixed
Correct
Answer: relevant to decisions in which one or more inputs to the production
process are fixed
Question 4
4 out of 4 points
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:
Selected
Answer: survivorship
analysis.
Correct
Answer:
survivorship
analysis.
Question 5
4 out of 4 points
, The degree of operating leverage is equal to the ____ change in ____ divided
by the ____ change in ____.
Selected
Answer:
percentage; EBIT;
percentage; sales
Correct
Answer:
percentage; EBIT;
percentage; sales
Question 6
4 out of 4 points
In the linear breakeven model, the difference between selling price per unit and variable cost
per unit is referred to as:
Selected
Answer:
contribution margin per
unit
Correct
Answer:
contribution margin per
unit
Question 7
4 out of 4 points
Uncertainty includes all of the following except ____.
Selected
Answer:
unverifiable
claims
Correct
Answer:
unverifiable
claims
Question 8
4 out of 4 points
If price exceeds average costs under pure competition, ____ firms will enter
the industry, supply will ____, and price will be driven ____.
Selected
Answer: more; increase;
down
Correct
Answer: more; increase;
down
Question 9
4 out of 4 points
In the short-run for a purely competitive market, a manufacturer will stop production when:
Selected
Answer:
the contribution to fixed costs is zero
or less
Correct
Answer:
the contribution to fixed costs is zero
or less
Question 10
Question 1
4 out of 4 points
Evidence from empirical studies of long-run cost-output relationships lends support to the:
Selected
Answer:
hypothesis that total costs increase linearly over some considerable
range of output examined
Correct
Answer: hypothesis that total costs increase linearly over some considerable
range of output examined
Question 2
4 out of 4 points
Theoretically, in a long-run cost function:
Selected
Answer: all inputs are considered
variable
Correct
Answer:
all inputs are considered
variable
Question 3
4 out of 4 points
The short-run cost function is:
Selected
Answer:
relevant to decisions in which one or more inputs to the production
process are fixed
Correct
Answer: relevant to decisions in which one or more inputs to the production
process are fixed
Question 4
4 out of 4 points
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:
Selected
Answer: survivorship
analysis.
Correct
Answer:
survivorship
analysis.
Question 5
4 out of 4 points
, The degree of operating leverage is equal to the ____ change in ____ divided
by the ____ change in ____.
Selected
Answer:
percentage; EBIT;
percentage; sales
Correct
Answer:
percentage; EBIT;
percentage; sales
Question 6
4 out of 4 points
In the linear breakeven model, the difference between selling price per unit and variable cost
per unit is referred to as:
Selected
Answer:
contribution margin per
unit
Correct
Answer:
contribution margin per
unit
Question 7
4 out of 4 points
Uncertainty includes all of the following except ____.
Selected
Answer:
unverifiable
claims
Correct
Answer:
unverifiable
claims
Question 8
4 out of 4 points
If price exceeds average costs under pure competition, ____ firms will enter
the industry, supply will ____, and price will be driven ____.
Selected
Answer: more; increase;
down
Correct
Answer: more; increase;
down
Question 9
4 out of 4 points
In the short-run for a purely competitive market, a manufacturer will stop production when:
Selected
Answer:
the contribution to fixed costs is zero
or less
Correct
Answer:
the contribution to fixed costs is zero
or less
Question 10
