Eco550   FINAL_EXAM 1 & 2.DOCX

Eco550 FINAL_EXAM 1 & 2

Question 1
5 out of 5 points

 
 

In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:

Answer
 
 
 
Selected Answer:
  

contribution margin per unit
Correct Answer:
  

contribution margin per unit
 
 
 
Question 2
0 out of 5 points

 
 

A ____ total cost function implies that marginal costs ____ as output is increased.

Answer
 
 
 
Selected Answer:
  

linear; increase linearly
Correct Answer:
  

linear; are constant
 
 
 
Question 3
5 out of 5 points

 
 

The short-run cost function is:

Answer
 
 
 
Selected Answer:
  

relevant to decisions in which one or more inputs to the production process are fixed
Correct Answer:
  

relevant to decisions in which one or more inputs to the production process are fixed
 
 
 
Question 4
5 out of 5 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
 
 
 
Selected Answer:
  

survivorship analysis.
Correct Answer:
  

survivorship analysis.
 
 
 
Question 5
0 out of 5 points

 
 

In determining the shape of the cost-output relationship only ____ depreciation is relevant.

Answer
 
 
 
Selected Answer:
  

time
Correct Answer:
  

usage
 
 
 
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