This document provides 116 questions and answers related to an ECO 550 final exam. It covers a range of economics topics including cost functions, survivorship analysis, breakeven analysis, market structures, game theory, and more. The questions are multiple choice and include the question, possible answers, and the identified correct answer. This resource could be useful for studying for an exam in economics or business at the intermediate microeconomics level.
Eco 550 final exam 36 questions with correct answersProfessorLance
This document provides 36 multiple choice questions about economics and finance concepts along with their correct answers. The questions cover topics such as cost functions, survivorship analysis, breakeven analysis, price discrimination, game theory, contract theory, capital budgeting, and weighted average cost of capital.
Price optimization uses three predictive models - claim propensity, market situation, and customer behavior - to set prices that maximize profits given constraints. An example is Parker Hannifin, which implemented demand-based pricing and saw profits rise from 7% to 21%. Price optimization integrates these models to predict how customers respond to price changes and identify optimal pricing strategies.
Customer is the most important player of market. All the efforts of companies are directed towards customers. Customer can either remain loyal with a particular brand or switch to another one. This particular study is going to evaluate the factors influencing customers to switch brands. This chapter presents work of previous researchers regarding brand switching. Factors influencing brand switching have been critically analyzed in the light of previous researches on brand switching
IPSERA 2016. Final paper by A. Okulov, A. van WeeleAnatoly Okulov
This document discusses relationship governance and its impact on performance outcomes in buyer-supplier relationships. It proposes that trust, commitment, and communication are key determinants of buyer-supplier performance. The study empirically tests these relationships using a sample of 95 Dutch firms, finding that trust, commitment, and communication positively influence quality improvement and customer satisfaction. Relationship governance mechanisms like contracts can also impact these relationships. Effective governance requires balancing formal mechanisms like contracts with informal aspects like trust and communication.
The document discusses monopolistic competition in the toothpaste market using Crest toothpaste as an example. It notes that while Procter & Gamble has monopoly power over Crest, their power is limited because consumers can easily substitute other brands if the price rises too much. The demand for Crest is downward sloping but fairly elastic. As a result, Procter & Gamble will charge a price only slightly higher than their marginal cost.
This document discusses various concepts related to pricing strategies. It covers 6 main learning outcomes:
1) The importance of pricing decisions to businesses and the economy. Price determines revenue and profit.
2) Different pricing objectives businesses may have like profit maximization, sales maximization, or maintaining status quo prices.
3) How demand influences price determination. The interaction of supply and demand curves establishes the equilibrium price.
4) Yield management systems which use software to adjust prices and maximize profits by filling unused capacity.
5) Cost-oriented pricing strategies like markup pricing, break-even pricing, and profit maximization pricing that relate price to a business's costs.
6) Other factors that influence
This document discusses coordinated effects that can arise from horizontal mergers. It defines coordinated effects as occurring when a merger makes tacit collusion between firms more likely or effective. It analyzes coordinated effects using the Airtours criteria for sustainable tacit collusion and the European Commission's checklist approach. The checklist approach involves assessing whether the merger would allow firms to reach tacit agreements, whether market characteristics would allow any agreements to be sustained, and whether the merger would make coordination more likely or effective. It also differentiates coordinated effects from unilateral effects that can arise without tacit agreements between firms.
This document discusses pricing concepts and strategies. It covers the five Cs of pricing: company objectives, customers, costs, competition, and channel members. It explains key pricing concepts like elasticity, break-even analysis, and the relationship between price and quantity sold. The learning objectives are to explain the different pricing orientations, price elasticity, calculating break-even points, and types of price competition levels.
Eco 550 final exam 36 questions with correct answersProfessorLance
This document provides 36 multiple choice questions about economics and finance concepts along with their correct answers. The questions cover topics such as cost functions, survivorship analysis, breakeven analysis, price discrimination, game theory, contract theory, capital budgeting, and weighted average cost of capital.
Price optimization uses three predictive models - claim propensity, market situation, and customer behavior - to set prices that maximize profits given constraints. An example is Parker Hannifin, which implemented demand-based pricing and saw profits rise from 7% to 21%. Price optimization integrates these models to predict how customers respond to price changes and identify optimal pricing strategies.
Customer is the most important player of market. All the efforts of companies are directed towards customers. Customer can either remain loyal with a particular brand or switch to another one. This particular study is going to evaluate the factors influencing customers to switch brands. This chapter presents work of previous researchers regarding brand switching. Factors influencing brand switching have been critically analyzed in the light of previous researches on brand switching
IPSERA 2016. Final paper by A. Okulov, A. van WeeleAnatoly Okulov
This document discusses relationship governance and its impact on performance outcomes in buyer-supplier relationships. It proposes that trust, commitment, and communication are key determinants of buyer-supplier performance. The study empirically tests these relationships using a sample of 95 Dutch firms, finding that trust, commitment, and communication positively influence quality improvement and customer satisfaction. Relationship governance mechanisms like contracts can also impact these relationships. Effective governance requires balancing formal mechanisms like contracts with informal aspects like trust and communication.
The document discusses monopolistic competition in the toothpaste market using Crest toothpaste as an example. It notes that while Procter & Gamble has monopoly power over Crest, their power is limited because consumers can easily substitute other brands if the price rises too much. The demand for Crest is downward sloping but fairly elastic. As a result, Procter & Gamble will charge a price only slightly higher than their marginal cost.
This document discusses various concepts related to pricing strategies. It covers 6 main learning outcomes:
1) The importance of pricing decisions to businesses and the economy. Price determines revenue and profit.
2) Different pricing objectives businesses may have like profit maximization, sales maximization, or maintaining status quo prices.
3) How demand influences price determination. The interaction of supply and demand curves establishes the equilibrium price.
4) Yield management systems which use software to adjust prices and maximize profits by filling unused capacity.
5) Cost-oriented pricing strategies like markup pricing, break-even pricing, and profit maximization pricing that relate price to a business's costs.
6) Other factors that influence
This document discusses coordinated effects that can arise from horizontal mergers. It defines coordinated effects as occurring when a merger makes tacit collusion between firms more likely or effective. It analyzes coordinated effects using the Airtours criteria for sustainable tacit collusion and the European Commission's checklist approach. The checklist approach involves assessing whether the merger would allow firms to reach tacit agreements, whether market characteristics would allow any agreements to be sustained, and whether the merger would make coordination more likely or effective. It also differentiates coordinated effects from unilateral effects that can arise without tacit agreements between firms.
This document discusses pricing concepts and strategies. It covers the five Cs of pricing: company objectives, customers, costs, competition, and channel members. It explains key pricing concepts like elasticity, break-even analysis, and the relationship between price and quantity sold. The learning objectives are to explain the different pricing orientations, price elasticity, calculating break-even points, and types of price competition levels.
A Model of Manufacturer-Driven Governing Mechanisms and Distributor PerformanceRuss Merz, Ph.D.
Drawing from relational exchange, dependence, and agency theories the authors explain that it is not only the type of governing mechanisms but also the proper sequencing of them that improves a manufacturer-distributor relationship and performance. Dependence affected relationship continuity positively. Monitoring affected the second order relational norm construct, comprising information sharing and flexibility, positively. Relational norm positively affected relationship continuity. Dependence, relationship continuity, monitoring, and relational norm affected distributor performance positively.
The document discusses information visibility in supply chains and its effect on supply chain dynamics. It analyzes current supply chain management (SCM) practices that rely on periodic data updates and manual data entry, which can be error-prone. The advent of the internet and new technologies like RFID tags enable real-time information sharing across supply chain partners. This dynamic trading model requires a communications framework to provide complete, standardized information visibility across the end-to-end supply chain in real-time. Such information sharing can improve planning, forecasting, and collaboration between suppliers, manufacturers, distributors and customers.
The document provides details of an assignment for an ECO 550 course. Students are asked to assume the role of a managing consultant advising a fictional company. The company produces 6,000 units per month at a cost of $70 per worker per day, plus $2,000 in other daily variable costs. It has high fixed costs. Students must analyze the company's financial performance and environmental factors to recommend whether it should continue or discontinue operations, showing calculations. They must also propose improvements and the circumstances for discontinuing operations.
Five forces model for industry analysisTheoremsol11
Michael Porter developed the Five Forces model in 1979 in response to limitations in SWOT analysis. The Five Forces model examines five competitive forces that shape an industry: the threat of new entrants, the power of suppliers, the power of buyers, the threat of substitutes, and the intensity of rivalry among existing competitors. Together these forces determine the profitability and attractiveness of an industry.
The Impact of Advertisement on Sales: Case Study in Some Selected Telecommuni...Liibaan Sagal
Abstract
This study was set out to establish the extent to which advertisement affects sales volume of selected
telecommunication companies in Mogadishu, Somalia; specifically the study intended to establish the (i) profile
of the respondents, (ii) extent of which advertisement, (iii) level sales volume (iii) whether there is a relationship
in the extent of which advertisement and the level of sales volume in selected telecommunication companies in
Mogadishu, Somalia. The study used a survey design; specifically descriptive correlations and descriptive
comparative; data were collected from 133 respondents using self administered questionnaires as the key data
collection instruments. The study findings revealed that there was a high level of which advertisement, there was
also high level of sales volume, the extent of advertisement and the level sales volume significantly differed
among telecommunication companies in Mogadishu city is significantly correlated with sales volume from the
above findings appropriate conclusion and recommendations include those for further research were made.
The purpose of Porter's five forces analysis is to assess the competitive environment in an industry and diagnose the principal competitive pressures. The five forces include the threat of new entrants, the bargaining power of suppliers and buyers, the threat of substitute products, and rivalry among existing competitors. Analyzing these forces helps understand the attractiveness of an industry and its profitability.
The document provides instructions for the ASCM626 FINAL EXAMINATION. It states that the exam must be submitted as one Word document and includes multiple choice and essay questions worth a total of 100 points. The multiple choice section includes 30 questions across various topics in procurement and supply chain management. The essay portion includes 27 additional questions related to contracting, negotiation, ethics and other relevant topics.
Porter five forces analysis is a framework developed by Michael Porter to analyze industry competition and develop business strategy. It involves analyzing five competitive forces that shape an industry: the threat of new entrants, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and competitive rivalry within an industry. The framework helps assess an industry's profitability and attractiveness.
This presentation by Rachel Brass, Partner, Gibson Dunn, was made during the discussion “Hub-and-spoke arrangements” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/hsa.
How to Set Pricing Using the Van Westendorp Price Sensitivity MeterQuestionPro
In this webinar, Dana Stanley of market research software firm Survey Analytics explains the common pricing research technique called the Van Westendorp Price Sensitivity Meter.
The document provides an overview of the course material for ACC 410 Entire Course Material- Auditing. It includes 14 discussion questions and assignments covering topics such as:
- The differences between internal and external audit staff relationships with a company.
- Conditions under which different types of audit reports may be issued, such as unmodified or qualified reports.
- Cases involving compliance with generally accepted auditing standards and procedures for topics like analytical procedures, internal controls, audit programs, and ethics.
The material asks students to evaluate statements, analyze case studies, describe audit processes, and discuss standards in order to demonstrate understanding of fundamental auditing concepts. Students are also instructed to respond to classmates' postings on the various discussion
Formulir ini digunakan untuk mengumpulkan data pribadi, pendidikan, sertifikasi, dan penugasan guru PNS dan non-PNS. Terdiri dari identitas diri, data sertifikasi, dan data penugasan yang mencakup tempat tugas, mata pelajaran yang diampu, dan beban mengajar. Data yang dikumpulkan diperlukan untuk keperluan administrasi kepegawaian.
This document provides a summary of the weekly assignments and discussion questions for the BSA 400 Entire Course, which includes 5 weeks of coursework. It involves discussion questions analyzing articles on topics like on-demand solutions, future ERP systems, CRM systems, dashboards, and ERP implementation. It also includes individual writing assignments each week assessing business systems, designing an enterprise system, implementing an ERP, and a final enterprise project paper and presentation.
Dokumen tersebut memberikan ringkasan singkat tentang hikmah yang diperoleh setelah mengalami gangguan jiwa, di antaranya mengenal diri sendiri lebih baik, menerima dan menyayangi diri sendiri, menyadari pentingnya kesehatan jiwa, dan menemukan makna hidup serta spiritualitas.
La Unión Europea ha acordado un paquete de sanciones contra Rusia por su invasión de Ucrania. Las sanciones incluyen restricciones a las importaciones de productos rusos de alta tecnología y a las exportaciones de bienes de lujo a Rusia. Además, se congelarán los activos de varios oligarcas rusos y se prohibirá el acceso de los bancos rusos a los mercados financieros de la UE.
Barlogisme vorbe de duh de Basile BARLOT, a șaptea parte.Basile Barlot
Scriitorul francez Basile BARLOT, de origină română (Vasile BARLOGEANU, este un representant al unui gen literar mai puțin obișnuit - aforismul - exprimând cu un minimum de cuvinte câteva din multiplele fațete ale existenței umane.
Asemenea scrieri bazate pe adevăruri existențiale care n-au nevoie de demonstrație, fiind - cum spune însusi autorul - extrema limită a unei certituni, chintensență a devenirii noastre temporale constitue latura forte a creației sale.
Aforismele sunt generate de interogații existențiale şi de răspunsuri pe care autorul le descoperă în propria-i devenire sau a celei a semenilor lui.
Dal webinar "Fiscal Focus Startup Innovative" organizzato da Yucan.it in collaborazione con lo Studio Sabrina Fattori, le slideshow aggiornate con le ultime news normative su S tartup & PMI innovative introdotte dall'Investment Compact.
Bis 155 entire course all labs quizzes and final examProfessorLance
This document provides details for an entire course on BIS 155, including labs, quizzes, and a final exam. It describes setting up a spreadsheet to calculate weekly payroll for 15 employees, including variables like hourly rates, overtime, taxes, and net pay. It also involves analyzing sales data from three store locations and categories over three years, and presenting the data visually and incorporating it into other presentations. Other tasks include rearranging monthly sales data from highest to lowest average and automating weekly production reports for a manufacturing company with different product sizes and locations. The final task involves using Excel to analyze a large text file with over 2,000 records and preparing a written report with recommendations.
A Model of Manufacturer-Driven Governing Mechanisms and Distributor PerformanceRuss Merz, Ph.D.
Drawing from relational exchange, dependence, and agency theories the authors explain that it is not only the type of governing mechanisms but also the proper sequencing of them that improves a manufacturer-distributor relationship and performance. Dependence affected relationship continuity positively. Monitoring affected the second order relational norm construct, comprising information sharing and flexibility, positively. Relational norm positively affected relationship continuity. Dependence, relationship continuity, monitoring, and relational norm affected distributor performance positively.
The document discusses information visibility in supply chains and its effect on supply chain dynamics. It analyzes current supply chain management (SCM) practices that rely on periodic data updates and manual data entry, which can be error-prone. The advent of the internet and new technologies like RFID tags enable real-time information sharing across supply chain partners. This dynamic trading model requires a communications framework to provide complete, standardized information visibility across the end-to-end supply chain in real-time. Such information sharing can improve planning, forecasting, and collaboration between suppliers, manufacturers, distributors and customers.
The document provides details of an assignment for an ECO 550 course. Students are asked to assume the role of a managing consultant advising a fictional company. The company produces 6,000 units per month at a cost of $70 per worker per day, plus $2,000 in other daily variable costs. It has high fixed costs. Students must analyze the company's financial performance and environmental factors to recommend whether it should continue or discontinue operations, showing calculations. They must also propose improvements and the circumstances for discontinuing operations.
Five forces model for industry analysisTheoremsol11
Michael Porter developed the Five Forces model in 1979 in response to limitations in SWOT analysis. The Five Forces model examines five competitive forces that shape an industry: the threat of new entrants, the power of suppliers, the power of buyers, the threat of substitutes, and the intensity of rivalry among existing competitors. Together these forces determine the profitability and attractiveness of an industry.
The Impact of Advertisement on Sales: Case Study in Some Selected Telecommuni...Liibaan Sagal
Abstract
This study was set out to establish the extent to which advertisement affects sales volume of selected
telecommunication companies in Mogadishu, Somalia; specifically the study intended to establish the (i) profile
of the respondents, (ii) extent of which advertisement, (iii) level sales volume (iii) whether there is a relationship
in the extent of which advertisement and the level of sales volume in selected telecommunication companies in
Mogadishu, Somalia. The study used a survey design; specifically descriptive correlations and descriptive
comparative; data were collected from 133 respondents using self administered questionnaires as the key data
collection instruments. The study findings revealed that there was a high level of which advertisement, there was
also high level of sales volume, the extent of advertisement and the level sales volume significantly differed
among telecommunication companies in Mogadishu city is significantly correlated with sales volume from the
above findings appropriate conclusion and recommendations include those for further research were made.
The purpose of Porter's five forces analysis is to assess the competitive environment in an industry and diagnose the principal competitive pressures. The five forces include the threat of new entrants, the bargaining power of suppliers and buyers, the threat of substitute products, and rivalry among existing competitors. Analyzing these forces helps understand the attractiveness of an industry and its profitability.
The document provides instructions for the ASCM626 FINAL EXAMINATION. It states that the exam must be submitted as one Word document and includes multiple choice and essay questions worth a total of 100 points. The multiple choice section includes 30 questions across various topics in procurement and supply chain management. The essay portion includes 27 additional questions related to contracting, negotiation, ethics and other relevant topics.
Porter five forces analysis is a framework developed by Michael Porter to analyze industry competition and develop business strategy. It involves analyzing five competitive forces that shape an industry: the threat of new entrants, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and competitive rivalry within an industry. The framework helps assess an industry's profitability and attractiveness.
This presentation by Rachel Brass, Partner, Gibson Dunn, was made during the discussion “Hub-and-spoke arrangements” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/hsa.
How to Set Pricing Using the Van Westendorp Price Sensitivity MeterQuestionPro
In this webinar, Dana Stanley of market research software firm Survey Analytics explains the common pricing research technique called the Van Westendorp Price Sensitivity Meter.
The document provides an overview of the course material for ACC 410 Entire Course Material- Auditing. It includes 14 discussion questions and assignments covering topics such as:
- The differences between internal and external audit staff relationships with a company.
- Conditions under which different types of audit reports may be issued, such as unmodified or qualified reports.
- Cases involving compliance with generally accepted auditing standards and procedures for topics like analytical procedures, internal controls, audit programs, and ethics.
The material asks students to evaluate statements, analyze case studies, describe audit processes, and discuss standards in order to demonstrate understanding of fundamental auditing concepts. Students are also instructed to respond to classmates' postings on the various discussion
Formulir ini digunakan untuk mengumpulkan data pribadi, pendidikan, sertifikasi, dan penugasan guru PNS dan non-PNS. Terdiri dari identitas diri, data sertifikasi, dan data penugasan yang mencakup tempat tugas, mata pelajaran yang diampu, dan beban mengajar. Data yang dikumpulkan diperlukan untuk keperluan administrasi kepegawaian.
This document provides a summary of the weekly assignments and discussion questions for the BSA 400 Entire Course, which includes 5 weeks of coursework. It involves discussion questions analyzing articles on topics like on-demand solutions, future ERP systems, CRM systems, dashboards, and ERP implementation. It also includes individual writing assignments each week assessing business systems, designing an enterprise system, implementing an ERP, and a final enterprise project paper and presentation.
Dokumen tersebut memberikan ringkasan singkat tentang hikmah yang diperoleh setelah mengalami gangguan jiwa, di antaranya mengenal diri sendiri lebih baik, menerima dan menyayangi diri sendiri, menyadari pentingnya kesehatan jiwa, dan menemukan makna hidup serta spiritualitas.
La Unión Europea ha acordado un paquete de sanciones contra Rusia por su invasión de Ucrania. Las sanciones incluyen restricciones a las importaciones de productos rusos de alta tecnología y a las exportaciones de bienes de lujo a Rusia. Además, se congelarán los activos de varios oligarcas rusos y se prohibirá el acceso de los bancos rusos a los mercados financieros de la UE.
Barlogisme vorbe de duh de Basile BARLOT, a șaptea parte.Basile Barlot
Scriitorul francez Basile BARLOT, de origină română (Vasile BARLOGEANU, este un representant al unui gen literar mai puțin obișnuit - aforismul - exprimând cu un minimum de cuvinte câteva din multiplele fațete ale existenței umane.
Asemenea scrieri bazate pe adevăruri existențiale care n-au nevoie de demonstrație, fiind - cum spune însusi autorul - extrema limită a unei certituni, chintensență a devenirii noastre temporale constitue latura forte a creației sale.
Aforismele sunt generate de interogații existențiale şi de răspunsuri pe care autorul le descoperă în propria-i devenire sau a celei a semenilor lui.
Dal webinar "Fiscal Focus Startup Innovative" organizzato da Yucan.it in collaborazione con lo Studio Sabrina Fattori, le slideshow aggiornate con le ultime news normative su S tartup & PMI innovative introdotte dall'Investment Compact.
Bis 155 entire course all labs quizzes and final examProfessorLance
This document provides details for an entire course on BIS 155, including labs, quizzes, and a final exam. It describes setting up a spreadsheet to calculate weekly payroll for 15 employees, including variables like hourly rates, overtime, taxes, and net pay. It also involves analyzing sales data from three store locations and categories over three years, and presenting the data visually and incorporating it into other presentations. Other tasks include rearranging monthly sales data from highest to lowest average and automating weekly production reports for a manufacturing company with different product sizes and locations. The final task involves using Excel to analyze a large text file with over 2,000 records and preparing a written report with recommendations.
Cara memasang widget Twitter di website meliputi login ke dasbor website, memilih widget teks dan menambahkannya ke sidebar utama, membuat widget baru di akun Twitter dengan mengatur tinggi 300 pixel, dan menyalin kode widget kemudian menempelkannya di widget teks yang telah dipilih.
Survey pembiayaan bpjs untuk terapi skizofreniaBagus Utomo
Riset mengenai penggunaan BPJS Kesehatan menemukan bahwa 66% responden adalah pengguna BPJS. Sebagian besar pengguna BPJS (91%) memerlukan surat rujukan dari puskesmas sebelum berobat. Rumah sakit umum adalah pusat pelayanan kesehatan yang paling sering dikunjungi (55%). Waktu tempuh dan biaya transportasi menuju pusat pelayanan kesehatan sering menjadi hambatan bagi pengguna BPJS. Se
This short document promotes creating presentations using Haiku Deck on SlideShare. It encourages the reader to get started making their own Haiku Deck presentation by providing a button to click to begin the process. In a single sentence, it pitches presentation creation using Haiku Deck on SlideShare.
Eco 550 final exam 36 questions with correct answersProfessorLance
This document provides 36 multiple choice questions about economics and finance concepts along with their correct answers. The questions cover topics such as cost functions, survivorship analysis, breakeven analysis, experience goods, public utility regulation, price discrimination, game theory, contract theory, capital budgeting, and weighted average cost of capital.
Credibility in threats and commitments in sequential games is base.docxvanesaburnand
Credibility in threats and commitments in sequential games is based on
randomizing one's actions so they are unpredictable
explicit communications with competitors
effective scenario planning
analyzing best reply responses
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
The starting point of many methods for predicting equilibrium strategy in sequential games is
designing proactive reactions to rival actions
information sets
uncertain outcomes
backwards induction based on an explicit order of play
endgame analysis
If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped
the Folk Theorem
the law of large numbers
the Prisoner's dilemma
the paradox of large numbers
the strategy of recusal
Which of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?
full-cost pricing policy
target-pricing policy
marginal-pricing policy
market-share pricing policy
markup pricing policy
To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.
ratio of price to marginal cost
ratio of marginal cost to marginal utility
ratio of price to elasticity
marginal revenue
The following are possible examples of price discrimination, EXCEPT:
prices in export markets are lower than for identical products in the domestic market.
senior citizens pay lower fares on public transportation than younger people at the same time.
a product sells at a higher price at location A than at location B, because transportation costs are higher from the factory to A.
subscription prices for a professional journal are higher when bought by a library than when bought by an individual.
__ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied.
Prestige pricing
Price lining
Skimming
Incremental pricing
Third-degree price discrimination exists whenever:
the seller knows exactly how much each potential customer is willing to pay and will charge accordingly.
different prices are charged by blocks of services.
the seller can separate markets by geography, income, age, etc., and charge different prices to these different groups.
the seller will bargain with buyers in each of the markets to obtain the best possible price.
Governance mechanisms are designed
to increase contracting costs
to resolve post-contractual opportunism
to enhance the flexibility of restrictive covenants
to replace insurance
When retail bicycle dealers adver.
Week 3 Activity 1 Midterm ExamTop of FormQuestion 1 In gene.docxmelbruce90096
Week 3 Activity 1: Midterm Exam
Top of Form
Question 1
In general, what is a price index? What questions does it help answer?
Answer:
Question 2
For the perfectly competitive firm, price equals marginal revenue because _________.
Choose one answer.
a. when another unit of the good is sold, total revenue increases by the price of the good
b. when another unit of the good is sold, total revenue decreases by the price of the good
c. when another unit of the good is sold, total revenue increases by less than the price of the good
d. when another unit of the good is sold, total revenue increases by more than the price
Question 3
The law of supply states that _________.
Choose one answer.
a. firms supply more of a product as consumer income rises
b. firms supply more of a product as consumer income falls
c. firms supply more of a product as the price of the product rises
d. firms supply more of a product as the price of the product falls
Question 4
The price elasticity of demand is calculated by _________.
Choose one answer.
a. the change in price divided by the change in quantity demanded
b. the change in quantity demanded divided by the change in price
c. the percentage change in price divided by the percentage change in quantity demanded
d. the percentage change in quantity demanded divided by the percentage change in price
Question 5
Scarcity can best be defined as a situation in which _________.
Choose one answer.
a. there are no buyers willing to purchase what sellers have produced
b. there are not enough goods to satisfy all of the buyers’ demand
c. resources are limited in quantity and can be used in different ways
d. there is not enough money to satisfy consumers’ wants
Question 6
Match the description to the right curve.
is cost that varies with the level of output
is cost that does not vary with output
is the sum of total variable cost and total fixed cost
shows the additional cost of each additional unit of output a firm produces
is total cost divided by quantity.
is the firm’s variable cost per unit of output; it is total variable cost divided by quantity
which is total fixed cost divided by quantity
Question 7
State the essential difference between the classical and Keynesian schools of thought. If you were a public policymaker and received conflicting advice from a classical and a Keynesian economist, how would you choose? Explain.
Answer:
Question 8
In the short-run, ______ factors of production are fixed, while in the long-run, _____ of them are.
Choose one answer.
a. some, none
b. all, none
c. no, at least some
d. all, at least some
Question 9
When economists say a market has "barriers to entry" they refer to _________.
Choose one answer.
a. monopolists being prohibited from selling their products to certain customers
b. a policy that some countries establish to reduc.
Question 1A factor of production whose quantity can be changed d.docxmakdul
Question 1
A factor of production whose quantity can be changed during a particular period is a:
marginal factor of production.
fixed factor of production.
incremental factor of production.
variable factor of production.
Question 2
Assuming that all other factors of production are held constant, marginal product is the change in ________ output resulting from a 1-unit change in _______ .
total; a variable input
total; a fixed input
total; average product
per unit; a fixed input
Question 3
Average variable cost is the ratio of:
total cost to the marginal cost.
total cost to the amount of variable input.
variable cost to the quantity of output.
marginal cost to the quantity of output.
Question 4
The curve labeled V represents the firm's _______ curve.
total cost
average total cost
marginal cost
average variable cost
Question 5
When an increase in the firm's output reduces its long-run average cost, it experiences:
economies of scale.
diseconomies of scale.
constant returns to scale.
variable returns to scale.
Question 6
A firm that is able to more efficiently utilize by-products as it increases production in the long run is an example of:
economies of scale.
diseconomies of scale.
labor-intensive production.
capital-intensive production.
Question 7
If your plant is operating in the positively-sloped portion of a long-run average cost curve, this could be the result of:
decreased input prices.
improved utilization of by-products.
specialization of resources.
limited decision-making capacity.
Question 8
Perfect competition is a model of the market that assumes all of the following EXCEPT:
a large number of firms.
firms face downward-sloping demand curves.
firms produce identical goods.
many buyers.
Question 9
The Case in Point on the Burkha Industry suggested that this industry:
might be an example of perfect competition although it did not feature easy entry and exit.
might be an example of perfect competition because it did feature easy entry and exit.
might not be an example of perfect competition although it did feature easy entry and exit.
might not be an example of perfect competition because it did not feature easy entry and exit.
Question 10
If a perfectly competitive firm sells 30 units of output at a price of $10 per unit, its marginal revenue is:
$10.
more than $10.
less than $10.
$300.
Question 11
The difference between total revenue and total cost is:
economic profit.
nominal revenue.
average revenue.
marginal revenue.
Question 12
If a perfectly competitive firm is producing a quantity that generates MC < MR, then profit:
is maximized.
can be increased by increasing production.
can be increased by decreasing production.
can be increased by increasing the price.
Question 13
In the short run, a perfectly competitive firm does not produce output and earns a negative economic profit if:
P = ATC.
P < AVC.
AVC > P > ATC.
AVC < P < ATC.
Question 14
If all fir ...
This document provides an overview of the coursework for ECO 550 at Strayer University. It includes discussion questions, chapter questions, and a quiz for weeks 1 and 2 of the course. The questions cover topics such as characteristics of transactions, the role of institutions, supply and demand, market structures, and costs.
The document provides details of an assignment for an ECO 550 course. Students are asked to assume the role of a managing consultant advising a fictional company. The company uses 100 workers to produce 6,000 units per month at a total cost that exceeds total revenue. Students must analyze the company's financial performance and environmental factors to recommend whether it should continue or discontinue operations. They must also provide a plan to improve profitability if operations continue. The assignment requires calculations and at least three academic sources.
The document provides details of an assignment for an ECO 550 course. Students are asked to assume the role of a managing consultant advising a fictional company. The company produces 6,000 units per month at a cost of $70 per worker per day, plus $2,000 in other daily variable costs. It has high fixed costs. Students must analyze the company's financial performance and environmental factors to recommend whether it should continue or discontinue operations, showing calculations. They must also propose improvements and the conditions for discontinuing operations.
The document is a 30 question multiple choice quiz on economics topics including perfect competition, market structures, game theory, and probability. It covers concepts like price discrimination, barriers to entry, external costs, unitization contracts, risk preferences, and opportunity cost. Sample questions test understanding of key terms and ideas in each economic subfield.
Role of Technology in Long-Term CareUsing Scholarly Library and .docxjoellemurphey
Role of Technology in Long-Term Care
Using Scholarly Library and the Internet, find three articles describing the role technology will play in addressing the challenges ahead in long-term care. Summarize your findings and based on your learning, respond to the following questions:
· Which challenges in long-term care system remain unmet? Why?
· What changes can we expect to occur with the influx of baby boomers entering into the long-term care system?
· Why do you think technology is important to long-term care? Support your answer with relevant examples.
· What are the pros and cons of the implementation of technology in long-term care? Consider both providers and consumers while describing.
· How does technology improve the type and quality of care received by long-term care consumers?
· How important is the commitment by top management for the use of information technology in long-term care to be successful? Why?
· How can the challenges be proactively addressed as opposed to being reactive?
Legal and Ethical Issues: Case Study
Cathy Smith, an eighty-eight-year-old woman, was admitted to the emergency room from the nursing facility with acute respiratory distress. Although Smith does not have a living will, her daughter Rose, a health care professional, has the power of attorney (POA) to make her mother's health decisions.
Smith suffers from end-stage Alzheimer's disease and recently experienced congestive heart failure. Her condition is alarming. The doctors want to place her on life-support equipment, including a ventilator. Smith's son, Andrew, agrees with the doctor's decision. However, Rose states her mother would never want to be placed on life-support machines to prolong her life.
Analyze the scenario and answer the following questions:
· What are the autonomy-beneficial conflicts between Rose and Andrew related to placing their mother on life support in this case? Who has the right to make the decision on behalf of the client? Why?
· What are the ethical issues related to the competency and decision-making capacity of the client while making the health care decisions? Do these issues impact the services offered in long-term care? How?
· What are some of the critical issues related to informed consent? Who has the right to assume this responsibility? Why?
ECO 500 FINAL EXAMS
The main role of economic profits is to:
signal where resources are most highly valued by society
allow firms to cover their production costs
allow consumers to cover their opportunity cost
None of the statements associated with this question are correct
If the interest rate is 3 percent, the present value of $900 received at the end of three years is:
$891.
$823.63.
$799.64
$983.45
The optimal amount of exercise is determined by comparing:
marginal benefit and the total cost of exercise.
total benefit and the marginal cost of exercise.
marginal benefit and the marginal cost of exercise.
total benefit and the total cost of exercise.
Suppose the ma ...
Chapter-5 Industry and competitor analysisAfzaal Ali
Industry and competitor analysis is important for new ventures to determine if a niche market is favorable and to assess the attractiveness of an industry. The five forces model examines threat of new entrants, rivalry among existing firms, bargaining power of suppliers and buyers, and threat of substitutes. A competitor analysis identifies competitors and collects intelligence through ethical means like trade shows. This information is organized in a competitive analysis grid to evaluate competitive positions.
This document discusses market pricing decisions and market structures using Porter's model. It covers the key market structures of perfect competition, monopoly, monopolistic competition, and oligopoly. For each structure, it examines how firms make output and pricing decisions based on factors like demand elasticity, costs, and competitors' actions. It also analyzes the implications of each market structure for public interest, including impacts on prices, output, innovation, and resource allocation. Non-price competition strategies like advertising and product development are also briefly discussed.
This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/strategy-toolkit-446
Strategy is often a challenging topic. This Toolkit will help you in the development of your business strategy with some models such as:
*Common STEEP Factors
*Five Forces Questions
*5 Market Test
*Generic Strategies
*Competitor Analysis
*SWOT
*TOWS Analysis
*Grand Strategy Selection Matrix
*Grand Strategy Clusters
*Risks & Mitigations
This document discusses market failures caused by externalities and public goods. It defines key concepts like marginal external cost, negative externalities, positive externalities, and public goods. It analyzes how externalities can lead to overproduction or underproduction compared to the socially efficient level. Policy options like emissions fees, standards, and tradable permits are presented to correct for negative externalities. The Coase theorem and issues around bargaining with externalities are also summarized. Common property resources and free riding problems with public goods are further market failures discussed.
Question 12.5 ptsThe amount by which an additional unit of a fac.docxmakdul
Question 12.5 pts
The amount by which an additional unit of a factor increases the firm's total revenue during a period is:
marginal revenue product.
average product.
marginal factor cost.
marginal physical product.
Question 22.5 pts
In perfect competition, marginal revenue product is equal to:
the product price.
marginal product.
marginal product multiplied by the product price.
the ratio of marginal product to the product price.
Question 32.5 pts
If the _______ of labor is increased, ceteris paribus, eventually the _______ will ________ .
price; supply of labor; increase
quantity; marginal product of labor; fall
quantity; marginal product of labor; rise
quantity; marginal revenue product of labor , rise
Question 42.5 pts
Marginal Revenue Product and Demand
Units of Variable Factor
Total Products
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
150
8
140
If the product price is $2 per unit, the marginal revenue product for the fifth unit of the variable input is:
$0.
$20.
$40.
$60.
Question 52.5 pts
A change in the quantity demanded of chocolate, a factor of production used to produce chocolate-covered peanuts, will occur if:
the price of chocolate increases.
the price of chocolate-covered peanuts increases.
the demand for chocolate-covered peanuts decreases.
a new, improved chocolate-covered-peanut-making machine is purchased by candy companies.
Question 62.5 pts
Which of the following statements is true?
The market demand curve for labor is found by adding the supply curves for labor of individual firms.
A firm's demand for labor is the upward-sloping portion of the MRP curve for labor.
The market demand for labor will change as a result of a change in the use of a complementary factor or a substitute factor.
The market demand curve for labor is vertical at the profit-maximizing wage.
Question 72.5 pts
If people expect to _______ and also expect that benefits from social security may not be forthcoming, the supply curve for labor will shift to the _______ .
live longer; left
live shorter lives; right
live longer; right
die soon; right
Question 82.5 pts
In general, a firm hires the quantity of a factor of production up to the point at which marginal factor cost equals marginal revenue product.
True
False
Question 92.5 pts
Suppose that the labor market for clerical workers in a major city includes 1 employer and 100,000 workers. The model that best fits this situation is:
monopoly.
bilateral monopoly.
perfect competition.
monopsony.
Question 102.5 pts
In a monopsony model of a labor market, as more labor is hired, the marginal factor cost of labor:
rises.
is constant.
is zero.
decreases.
Question 112.5 pts
Suppose that a monopsonist increases the number of workers hired from 10 to 11. If the market wage increases from $20 per worker to $21 per worker, the marginal factor cost for the eleventh worker is:
$20.
$21.
$31.
$231.
Question 122.5 pts
A firm buying factors of production in a perfe ...
- Monopolistic competition describes a market with many producers offering similar but differentiated products, with each firm having some control over price. Barriers to entry are low, allowing firms to freely enter and exit the market.
- In the short run, firms maximize profits where marginal revenue equals marginal cost. In the long run with free entry and exit, firms earn zero economic profit as supply and demand equilibrate.
- Oligopoly is dominated by a few large firms. These firms are interdependent and must consider competitors' responses in decision making. Barriers to entry allow oligopolies to persist and earn economic profits.
This document provides an overview of key concepts in engineering economics and financial accounting. It defines managerial economics and engineering economics, and discusses topics like demand, elasticity, costs, profits, budgets, and financial analysis. Some key points covered include defining fixed and variable costs, discussing methods of demand forecasting and types of elasticity, and explaining tools for capital budgeting like net present value, payback period, and internal rate of return.
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The document discusses competitive strategy and industry analysis. It begins by defining industry structure and the 5 forces that shape competition: threat of new entry, intensity of rivalry, pressure from substitutes, bargaining power of buyers, and bargaining power of suppliers. It then discusses the value chain and how activities within the value chain can provide competitive advantage. Finally, it outlines generic competitive strategies of cost leadership, differentiation, and focus, noting firms can pursue a cost focus, differentiation focus, or broad cost leadership/differentiation strategies. The key aspects of industry structure, sources of competitive advantage, and generic strategies are summarized in under 3 sentences.
Monopolistic competition and oligopoly are two market structures between perfect competition and monopoly. Monopolistic competition is characterized by many firms with differentiated products. Firms have some market power but no barriers to entry or exit. Oligopoly is characterized by a few dominant firms where the behavior of one firm depends on its competitors. Game theory is used to analyze strategic interactions among oligopolistic firms.
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Ind...FaHaD .H. NooR
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Industry Types | What Is Industry | Competitor Analysis | Studying Industry Trends |
Similar to Eco 550 final exam 116 questions with answers 100% correct (20)
Industry and Competitor Analysis | Five Competitive Forces | Five Primary Ind...
Eco 550 final exam 116 questions with answers 100% correct
1. 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.
2. 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:
3. Answer
Governmental pressure to lower the price
Reduced demand for long distance service
Entry into this industry pushes prices down
Lower price for a barrel of crude oil
Increased cost of providing long distance service
What is the profit maximization point for a firm in a purely competitive environment?
Answer
The output where
The output where P < MC
The output where P > MC
The output where
The output where AVC < P
Question 7
The problems of asymmetric information exchange arise ultimately because
4. Answer
one party to the exchange possesses different information than another
one party has more information than another
one party knows nothing
one party cannot independently verify the information of another
information is scarce
Question 8
An “experience good” is one that:
Answer
Only an expert can use
Has undetectable quality when purchased
Can be readily experienced simply by touching or tasting
Improves with age, like a fine wine
Question 9
Of the following, which is not
an economic rationale for public utility regulation?
5. Answer
production process exhibiting increasing returns to scale
constant cost industry
avoidance of duplication of facilities
protection of consumers from price discrimination
Question 10
____ 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.
Answer
Peak load pricing
Inverted block pricing
Block pricing
First degree price discrimination
Question 11
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:
Answer
price would equal average cost.
6. price would exceed average cost.
price would be below average cost.
price would be at the profit maximizing level for natural monopoly
Question 12
Regulatory agencies engage in all of the following activities except _______.
Answer
controlling entry into the regulated industries
overseeing the quality of service provided by the firms
setting federal and state income tax rates on regulated firms
setting prices that consumers will pay
Question 13
5 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.
Answer
price
output
marketing strategy
inventory
7. Question 14
Barometric price leadership exists when
Answer
one firm in the industry initiates a price change and the others follow it as a signal of changes in
cost or demand in the industry.
one firm imposes its best price on the rest of the industry.
all firms agree to change prices simultaneously.
one company forms a price umbrella for all others.
the firms are all colluding.
Question 15
A(n) ____ is characterized by a relatively small number of firms producing a product.
Answer
monopoly
syndicate
cooperative
oligopoly
Question 16
Even ideal cartels tend to be unstable because
8. Answer
firms typically prefer competition to collusion as competition, because it leads to more profits.
collusion leads to lowest possible overall profits in the industry.
oligopolistic managers are extremely risk loving.
firms can benefit by secretly selling more than they promised the other firms
Question 17
The starting point of many methods for predicting equilibrium strategy in sequential games is
Answer
designing proactive reactions to rival actions
information sets
uncertain outcomes
backwards induction based on an explicit order of play
endgame analysis
Question 18
Cooperation in repeated prisoner’s dilemma situations seems to be enhanced by all of the
following except
Answer
limited punishment schemes
clarity of conditional rewards
9. grim trigger strategy
provocability–i.e., credible threats of punishment
tit for tat strategy
Question 19
When there is no Equilibrium (or no Nash Equilibrium), we expect that:
Answer
the firms end up in the cooperative strategy.
a firm will follow a randomized strategy.
a firm will not care what it does.
a firm will very likely have a dominant strategy.
Question 20
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
Answer
establishing a bond forfeited by violating the commitment
investing in a non-redeployable reputational asset tied to the promise or threat
interrupting the communication of negotiated compromises
offering a warranty
10. delivering a hostage (e.g., a patent license triggered by violating the promise)
Question 21
____ is a new product pricing strategy which results in a high initial product price. This price is
reduced over time as demand at the higher price is satisfied.
Answer
Prestige pricing
Price lining
Skimming
Incremental pricing
Third-degree price discrimination exists whenever:
Answer
the seller knows exactly how much each potential customer is willing to pay and will charge
accordingly.
different prices are charged by blocks of services.
the seller can separate markets by geography, income, age, etc., and charge different prices to
these different groups.
the seller will bargain with buyers in each of the markets to obtain the best possible price.
Which of the statements about price discrimination is (are) false?
Answer
It must be possible to segment the market.
It must be difficult to transfer the seller’s product from one market segment to another.
Public utilities practice first-degree price discrimination.
There must be differences in the elasticity of demand from one segment to another.
11. The following are possible examples of price discrimination, EXCEPT:
Answer
prices in export markets are lower than for identical products in the domestic market.
senior citizens pay lower fares on public transportation than younger people at the same time.
a product sells at a higher price at location A than at location B, because transportation costs are
higher from the factory to A.
subscription prices for a professional journal are higher when bought by a library than when
bought by an individual
Which of the following is not among the functions of contract?
Answer
to provide incentives for efficient reliance
to reduce transaction costs
to discourage the development of asymmetric information
to provide risk allocation mechanisms
Question 26
When borrowers who do not intend to repay are able to hide their bad credit histories, a lender’s
well-intentioned borrowers should
Answer
complain to regulatory authorities
withdraw their loan applications
offer more collateral in exchange for lower interest charges
divulge still more information on their loan applications
hope for a pooling equilibrium
12. Question 27
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
Answer
breach of contractual obligations
denial of good guarantee
loss of reputation
moral hazard
Question 28
Which of the following are not approaches to resolving the principal-agent problem?
Answer
ex ante incentive alignment
deferred stock options
ex post governance mechanism
straight salary contracts
monitoring by independent outside directors
Question 29
13. The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market
model.
Answer
monopolistic competition
perfectly contestable
oligopoly
monopoly
Question 30
Industry A has market shares of 50, 30, and 20. Industry B has market shares of 45, 40, and 15.
Hint: HHI = Σ (si2), where si is the market shares of the i-th firm in the industry.
Answer
The Herfindahl index for A is 100.
The Herfindahl index for A is 3,800.
The Herfindahl index for B is 3,600
The Herfindahl index for A is greater than for B.
The Herfindahl index is for B is 4,000.
Question 31
____ 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.
Answer
14. Pecuniary benefits and costs
Externalities
Intangibles
Monopoly costs and benefits
Question 32
____ yields the same results as the theory of perfect competition, but requires substantially fewer
assumptions than the perfectly competitive model.
Answer
Baumol’s sales maximization hypothesis
The Pareto optimality condition
The Cournot model
The theory of contestable markets
Question 33
Which of the following would not be classified as a capital expenditure for decision-making
purposes?
Answer
purchase of a building
investment in a new milling machine
15. purchase of 90-day Treasury Bills
investment in a management training program
Question 34
Capital expenditures:
Answer
are easily reversible
are forms of operating expenditures
Affect long-run future profitability
Involve only money, not machinery
Question 35
The ____ method assumes that the cash flows over the life of the project are reinvested at the
____.
Answer
net present value; computed internal rate of return
internal rate of return; firm’s cost of capital
net present value; firm’s cost of capital
net present value; risk-free rate of return
16. Question 36
The weights used in calculating the firm’s weighted-average cost of capital are equal to the
proportion of debt and equity ____.
Answer
used to finance the project
used to finance the projects undertaken last year
in the industry average capital structure
in the firm’s target capital structure
ECO 550 Final Exam set 2
(1) Which of the following factors affect vertical integration of firms?
(2) In order to be successful as an innovator, a firm may require:
(3) According to economists, an individual who tries to derive utility from the consumption of a
good without paying for it is called:
(4) According to Coasian reasoning, if negotiation is costless:
17. (5) Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT
(6) Which of the following is a legal remedy for a breach of the contract between parties?
(7) Which of the following examples can be associated with the task specificity aspect of an
asset?
(8) Which of the following contracts is considered self-enforcing?
(9) The primary objective of a for-profit firm is to ___________.
(10) Which of the following theories states that people who are highly risk-averse
are less likely to engage in high-risk activities?
(11) Income tax payments are an example of ____.
(12) Economic profit is defined as the difference between revenue and ____.
18. (13) DTC contracts which prohibit buyers from inspecting diamonds in advance
help to minimize:
(14) Which of the following situations can lead to a winner’s curse?
(15) A person acting as a supervisor as well as a residual claimant:
(16) _____ is a property which distinguishes corporations from proprietorships and
partnerships.
(17) _____ are legal and contractual mechanism[s] for creating and operating a
business for profit, using capital from investors that will be managed on their behalf by directors
and officers.
(18) The method of payment that a principal can use to elicit effort from an agent is
called:
19. (19) An information is beneficial to the decision-maker only when:
(20) General Motors was able to gain advantage over Ford in the 1920s primarily
because:
(21) Coal producers cannot profit by acting opportunistically toward U.S. Steel
because:
(22) _____, uncertainty, and risk of opportunism are the three major reasons due to
which U.S. Steel prefers to own its mines, enrichment facilities, and ore carriers.
(23) If there is a low degree of uncertainty combined with a low degree of asset
specificity, _____ will be efficient.
(24) Options are less than perfect as instruments to induce better performance
because:
(25) In long-term job attachments, a worker’s wage:
20. (26) A written contract between an employer and an employee creates value as
long as:
(27) Which of the following is a characteristic of a real option?
(28) If events A and B are independent, then Pr[A and B] will be:
(29) Which of the following strategies are adopted by a business tycoon when the
first new management of the purchased company fails?
(30) A characteristic function is:
(31) _____ is an online venue where businesses and individuals can hedge their
uncertainty about whether legislation that affects them will be enacted.
(32) The assumption of rationality in economics implies that:
21. (33) The net present value of an investment represents
(34) Measuring important concepts in economics is difficult and some important
economic phenomena are still beyond the understanding of economists. Thus economics is called
(35) The shares of the economic value of a particular transaction that accrues to the
seller and the buyer depend on:
(36) Megan, an analyst in Ronald’s team called in sick on a day when 4 projects
were due for completion. Ronald divided Megan’s work between the remaining six team-
members. Which form of governance is being used here?
(37) If the transaction between you and the seller takes place at a price that equals
your valuation of the product, then
(38) Starting from a pure exchange equilibrium, an increase in the demand for a
commodity will result in
(39) In a “pure exchange” market:
22. (40) If two commodities are complements then
(41) The gap between average total cost and average variable cost
(42) Let the marginal product of capital (MPK ) be 6; the marginal product of labor
(MPL) be 2; the price of labor is given by $10. What will be the price of capital such that the
isocost and the isoquant are tangent to each other?
(43) Which of the following cases exhibit increasing returns to scale?
(44) Assume that the world price of Good A is $8 per unit while its domestic price
is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is
$5. If the government imposes a tax of $3 per unit on domestic producers, which of the following
situations will be observed?
(45) If the cost of production incurred by two producers in a competitive industry
differs, the long-run supply curve:
(46) Which of the following commodities have a high short-run own-price
elasticity of supply?
23. (47) Refer to Figure 6-4. What price will the monopolist charge when its marginal
cost shifts from C to C’?
(48) The following figure depicts the demand, marginal revenue (MR), and marginal cost (MC)
for a monopolist.
Figure 6-4
(48) In the small country of Talisman, the liquor industry is monopolized by a
single producer Best Drinks Inc. Best Drinks charges high end customers like 5-star hotels a
much higher price than it charges local pubs. Identify the correct statement from the following.
(49) Which of the following statements is true regarding the difference between a
monopolist and a perfectly competitive firm?
(50) Which of the following games will have a solution in mixed strategies?
(51) Refer to Table 7-3. What will be the Nash equilibrium if there is no interaction
between the two students?
The following matrix represents the payoffs to two students who have been caught cheating in a
class.
Table 7-3
(52) n games without dominant strategies the Nash equilibrium can be found by
using:
24. (53) In a mixed strategy situation, like the “heads or tails” game, the players can
maximize their income by randomly choosing head or tail each with a probability of:
(54) In the Stackelberg leadership model
(55) The principle of backward induction proves that in price-fixing oligopoly
games
(56) A change in the level of an economic activity is desirable and should be
undertaken as long as the marginal benefits exceed the ____.
(57) The standard deviation is appropriate to compare the risk between two
investments only if
(58) The level of an economic activity should be increased to the point where the
____ is zero.
25. (59) An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income,
____ will increase by ____.
(60) Marginal revenue (MR) is ____ when total revenue is maximized
(61) An increase in each of the following factors would normally provide a
subsequent increase in quantity demanded, except:
(62) When using a multiplicative power function (Y = a X1b1 X2b2 X3b3) to
represent an economic relationship, estimates of the parameters (a, and the b’s) using linear
regression analysis can be obtained by first applying a ____ transformation to convert the
function to a linear relationship.
(63) The method which can give some information in estimating demand of a
product that hasn’t yet come to market is:
(64) When two or more “independent” variables are highly correlated, then we
have:
26. (65) One commonly used test in checking for the presence of autocorrelation when
working with time series data is the ____.
(66) Consumer expenditure plans is an example of a forecasting method. Which of
the general categories best described this example?
(67) Time-series forecasting models
(68) The forecasting technique which attempts to forecast short-run changes and
makes use of economic indicators known as leading, coincident or lagging indicators is known
as:
(69) Which of the following barometric indicators would be the most helpful for
forecasting future sales for an industry?
(70) The purchasing power parity hypothesis implies that an increase in inflation in
one country relative to another will over a long period of time
(71) If the British pound (₤) appreciates by 10% against the dollar:
27. (72) Companies that reduce their margins on export products in the face of
appreciation of their home currency may be motivated by a desire to
(73) Using demand and supply curves for the Japanese yen based on the $/¥ price
for yen, an increase in US INFLATION RATES would
(74) Marginal factor cost is defined as the amount that an additional unit of the
variable input adds to ____.
(75) Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for
a given industry, this industry would have:
(76) In a production process, an excessive amount of the variable input relative to
the fixed input is being used to produce the desired output. This statement is true for:
(77) The primary purpose of the Cobb-Douglas power function is to:
28. (78) What method of inventory valuation should be used for economic decision-
making problems?
(79) According to the theory of cost, specialization in the use of variable resources
in the short-run results initially in:
(80) Which of the following statements concerning the long-run average cost curve
of economic theory is true?