Eco 550 Final Exam – 116 Questions with Answers 100% Correct

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ECO 550 Final Exam – 116 Questions With Answers 100% Correct
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Midterm And Final Exam Solution ECO 550 Midterm And Final Exam Solution Set 1 Question 1
The short-run cost function is: Answer where all inputs to the production process are variable relevant to decisions in which one or more inputs to the production process are fixed not relevant to optimal pricing and production output decisions crucial in making optimal investment decisions in new production facilities
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
regression to the mean analysis. breakeven analysis. survivorship analysis. engineering cost analysis. a Willie Sutton analysis. Which of the following is not an assumption of the linear breakeven model: Answer constant selling price per unit decreasing variable cost per unit fixed costs are independent of the output level a single product (or a constant mix of products) is being produced and sold all costs can be classified as fixed or variable Question 4
A ____ total cost function implies that marginal costs ____ as output is increased.
Answer
linear; increase linearly quadratic; are constant cubic; increase linearly linear; are constant Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it’s declining. The likely reason for the declining price for long distance service is: Answer Governmental pressure to lower the price
Reduced demand for long distance service
Entry into this industry pushes prices down
Lower price…...

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