Strayer University, Washington - ECO 550 Final Exam Part 1_PART 2 (ALREADY GRADED A)

Final Exam Part 1 (100 points)

Course

Managerial Economics & Globali

Test

Final Exam Part 1 (100 points)

Status

Completed

Attempt Score

100 out of 100 points  

• Question 1

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:

• Question 2

4 out of 4 points

The short-run cost function is:

• Question 3

4 out of 4 points

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.

• Question 4

4 out of 4 points

Break-even analysis usually assumes all of the following except:

• Question 5

4 out of 4 points

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

• Question 6

4 out of 4 points

Theoretically, in a long-run cost function:

• Question 7

4 out of 4 points

Under asymmetric information,

• Question 8

4 out of 4 points

Asset specificity is largest when

• Question 9

4 out of 4 points

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

• Question 10

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 ____.

• Question 11

4 out of 4 points

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

• Question 12

4 out of 4 points

Uncertainty includes all of the following except ____.

• Question 13

4 out of 4 points

An "experience good" is one that:

• Question 14

4 out of 4 points

Declining cost industries

• Question 15

4 out of 4 points

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

• Question 16

4 out of 4 points

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:

• Question 17

4 out of 4 points

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

• Question 18

4 out of 4 points

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

• Question 19

4 out of 4 points

____ 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.

• Question 20

4 out of 4 points

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

• Question 21

4 out of 4 points

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

• Question 22

4 out of 4 points

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

• Question 23

4 out of 4 points

A cartel is a situation where firms in the industry

• Question 24

4 out of 4 points

Which of the following is an example of an oligopolistic market structure?

• Question 25

4 out of 4 points

Even ideal cartels tend to be unstable because

FINAL EXAM PART 2

Final Exam Part 2 (100 points)

Course

Managerial Economics & Globali

Test

Final Exam Part 2 (100 points)

Status

Completed

• Question 1

4 out of 4 points

An illustration of a non-credible commitment is the promise

• Question 2

4 out of 4 points

To trust a potential cooperator until the first defection and then never cooperate thereafter is

• Question 3

4 out of 4 points

Essential components of a game include all of the following except:

• Question 4

4 out of 4 points

Credibility in threats and commitments in sequential games is based on

• Question 5

4 out of 4 points

Non-cooperative sequential games can incorporate all the following features except

• Question 6

4 out of 4 points

The following are possible examples of price discrimination, EXCEPT:

• Question 7

4 out of 4 points

Third-degree price discrimination exists whenever:

• Question 8

4 out of 4 points

Which of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?

• Question 9

4 out of 4 points

____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm.

• Question 10

4 out of 4 points

Vacation tours to Europe invariably package visits to disparate regions:  cities, mountains, and the seaside.  Bundling, a type of second degree price discrimination, is most profitable when:

• Question 11

4 out of 4 points

Mac trucks and their dealers would likely have an organizational form of

• Question 12

4 out of 4 points

Which of the following is not among the functions of contract?

• Question 13

4 out of 4 points

Vertical integration may be motivated by all of the following except:

• Question 14

4 out of 4 points

Non-redeployable durable assets that are dependent upon unique complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as

• Question 15

4 out of 4 points

When someone contracts to do a task but fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a

• Question 16

4 out of 4 points

The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____.

• Question 17

4 out of 4 points

The sentiment for increased deregulation in the late 1970's and early 1980's has been felt most significantly in the price regulation of

• Question 18

4 out of 4 points

____ yields the same results as the theory of perfect competition, but requires substantially fewer assumptions than the perfectly competitive model.

• Question 19

4 out of 4 points

____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.

• Question 20

4 out of 4 points

The antitrust laws regulate all of the following business decisions except ____.

• Question 21

4 out of 4 points

The ____ method assumes that the cash flows over the life of the project are reinvested at the ____.

• Question 22

4 out of 4 points

The ____ depicts the risk-return relationship in the market for all securities:

• Question 23

4 out of 4 points

All of the following except ____ are shortcomings of cost-benefit analysis.

• Question 24

4 out of 4 points

Which of the following is (are) a basic principle(s) when estimating a project's cash flows?

• Question 25

4 out of 4 points

The social rate of discount is best approximated by: