Eco 550 final exam Study guides, Class notes & Summaries

In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are credibility-enhancing mechanisms except Essential components of a game include all of the following except: A key to analyzing subgame perfect equilibrium strategy in sequential games is When airlines post prices on an electronic bulletin board at 8:00 a.m. each morning, the decision-makers are engaged in Credible promises and hostage mechanisms c...

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 ...

Evidence from empirical studies of short-run cost-output relationships lends support to the: Break-even analysis usually assumes all of the following except: In determining the shape of the cost-output relationship only ____ depreciation is relevant. Answer In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by: Answer A firm in pure competition would shut down when: Answer Selected Answer: price is less than av...

The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____. The short-run cost function is: Theoretically, in a long-run cost function: Evidence from empirical studies of long-run cost-output relationships lends support to the: In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by: In a study of banking by asset size over time, we can find which asset sizes are tendi...

In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions. When a promisor 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 The Herfindahl-Hirschman index is a measure of ____. In long-run equilibrium, all firms in a pure competition market situation operating under a condi...

If two small perfectly competitive firms merge, the merged firm will be: In a market characterized by many buyers and one seller, investment in informative advertising by a seller can ____ the price of a commodity to customers and lower their _____ cost of acquiring information. Which of the following industries can create barriers to the entry of new firms due to size and specificity? Which of the following activities can create an external cost? Which of the following is an aim of a price-fixi...

ECO 550- FINAL EXAM PART 1 • Question 1 4 out of 4 points Theoretically, in a long-run cost function: Answer • Question 2 0 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: Answer • Question 3 0 out of 4 points Break-even analysis usually assumes all of the following except: Answ...

Question 1 In a game, a dominated strategy is one where: It is always the best strategy It is always the worst strategy It is the strategy that is the best among the group of worst possible strategies. Is sometimes the best and sometimes the worst strategy Question 2 To trust a potential cooperator until the first defection and then never cooperate thereafter is a dominant strategy an irrational strategy a grim trigger strategy a non-cooperative finite game strategy a subgame imperfect strategy ...

PART 1 1. Which of the following is not an assumption of the linear breakeven model: a. constant selling price per unit b. decreasing variable cost per unit c. fixed costs are independent of the output level d. a single product (or a constant mix of products) is being produced and sold e. all costs can be classified as fixed or variable 2. Theoretically, in a long-run cost function: a. all inputs are fixed b. all inputs are considered variable c. some inputs are always fixed d. capital and labor...