# Eco550 exam questions spring 2013

Question 1

The short-run cost function is:

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:

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:

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.

linear; increase linearly

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 itâs
declining. The likely reason for the declining price for long distance
service is:

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?

The output where
P = MC

The output where P < MC The output where P > MC

The output where MR = MC

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.