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ECO 550 Final Exam
1. The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____. 2. In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as: 3). Break-even analysis usually assumes all of the following except: 4).The short-run cost function is:
5). In the short-run for a purely competitive market, a manufacturer will stop production when: 6). In the long-run, firms in a monopolistically competitive industry will 7). A "search good" is:
8). All of the following are true for both competition and monopolistic competition in the long run, except one of them. Which is it? 9). Regulatory agencies engage in all of the following activities except _______. 10). 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. 11). When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation. 13). 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: 14). A(n) ____ is characterized by a relatively small number of firms producing a product. 15). 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. 16). The existence of a kinked demand curve under oligopoly conditions may result in 17). "Conscious parallelism of action" among oligopolistic firms is an example of ____. 18). A key to analyzing subgame perfect equilibrium strategy in sequential games is 19). Credible promises and hostage mechanisms can support a continuous stream of...
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