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Eco 550

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| | | In determining the shape of the cost-output relationship only ____ depreciation is relevant.Answer | | | | | Selected Answer: | usage | Correct Answer: | usage | | | | | * Question 2
5 out of 5 points | | | George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000. If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year.Answer | | | | | Selected Answer: | 30,000 customers | Correct Answer: | 30,000 customers | | | | | | | * 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 | | | Which of the following is not an assumption of the linear breakeven model:Answer | | | | | Selected Answer: | decreasing variable cost per unit | Correct Answer: | decreasing variable cost per unit | | | | | | | * Question 5
0 out of 5 points | | | Under asymmetric information,Answer | | | | | Selected Answer: | sellers make profits in excess of competitive returns | Correct Answer: | at best you get what you pay for | | | | | * Question 6
5 out of 5 points | | | In the purely competitive case, marginal revenue (MR) is equal to:Answer | | | | | Selected Answer: | price | Correct Answer: | price | | | | | * Question 7 | | | All of the following are mechanisms which reduce the adverse selection problem except ____.Answer | | | |…...

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