ECON 550 Final Part 1 - Latest complete version, 100 out of 100 points

Econ 550 Final Part 1 • Question 1 4 out of 4 points Evidence from empirical studies of long-run cost-output relationships lends support to the: • Question 2 4 out of 4 points Which of the following is not an assumption of the linear breakeven model: • 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 In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as: • Question 5 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 6 4 out of 4 points Theoretically, in a long-run cost function: • Question 7 4 out of 4 points In the long-run, firms in a monopolistically competitive industry will • Question 8 4 out of 4 points Asset specificity is largest when • Question 9 4 out of 4 points Experience goods are products or services • Question 10 4 out of 4 points Under asymmetric information, • Question 11 4 out of 4 points A firm in pure competition would shut down when: • Question 12 4 out of 4 points The problems of asymmetric information exchange arise ultimately because • Question 13 4 out of 4 points All of the following are mechanisms which reduce the adverse selection problem except ____. • Question 14 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 15 4 out of 4 points Declining cost industries • Question 16 4 out of 4 points Regulatory agencies engage in all of the following activities except _______. • Question 17 4 out of 4 points 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. • Question 18 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 19 4 out of 4 points Of the following, which is not an economic rationale for public utility regulation? • Question 20 4 out of 4 points 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. • Question 21 4 out of 4 points Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful? • Question 22 4 out of 4 points Barometric price leadership exists when • Question 23 4 out of 4 points The existence of a kinked demand curve under oligopoly conditions may result in • Question 24 4 out of 4 points Some industries that have rigid prices. In those industries, we tend to • Question 25 4 out of 4 points A(n) ____ is characterized by a relatively small number of firms producing a product.