Managerial Economics Final Exam

1. O or X (True or False)
(       ) 1. The production function is nothing to do with the isoquant.
(       ) 2. The average product(AP) can be negative.
(       ) 3. The marginal product(MP) can be negative.
(       ) 4. The AP is always greater than the MP.
(       ) 5. The total product(TP) increases all the time as the inputs increase.
(       ) 6. The isocost is related to the cost function.
(       ) 7. The output elasticity of capital determines the return to scale.
(       ) 8. The productivity is not related to the AP.
(       ) 9. The productivity is not related to the MP.
(       ) 10. The learning curve is the function of time.
(       ) 11. The diffusion curve is the function of time.
(       ) 12. The total cost is a sum of fixed cost and variable cost in a long-run.
(       ) 13. The marginal cost(MC) is higher than the average cost(AC) at any output.
(       ) 14. The break-even output is estimated from the positive profit..
(       ) 15. The long-run cost function is estimated on the cross-section data.
(       ) 16. A difference between oligopoly & monopolistic competition is number of firms.
(       ) 17. The monopoly firm faces the perfectly price-elastic demand.
(       ) 18. The oligopoly firm faces the moderately price-elastic demand.
(       ) 19. The perfect competitive firm faces the perfectly price-inelastic demand.
(       ) 20. The cartel model is a kind of monopoly market.
(       ) 21. The sales maximization model concerns the profit.
(       ) 22. The dominant strategy game is considering other firm's strategy.
(       ) 23. The mark-up pricing on price is higher that mark-up pricing on cost.
(       ) 24. The transfer pricing is to find price of similar products.
(       ) 25. The expected value calculation is needed for the uncertainty analysis.
(       ) 26. The net present value calculation is needed for the risk analysis.
(       ) 27. The cost of debt(loan) is nothing to do with firm's tax rate.

2. Summarize
        (1) Condition of optimum 2 inputs :
        (2) Increasing return to scale:
        (3) Cobb-Douglas production function:
        (4) Causes of productivity increases:
        (5) Opportunity cost:
        (6) Economy of scope:
        (7) Types of market structures:
        (8) Condition of optimum output and price in the market:
        (9) Mark-up pricing on cost and mark-up pricing on price:
        (10) Price discrimination:
        (11) Maximin and minimax:
        (12) Risk attitudes:
        (13) Market power regulation acts: