Eco5 Study guides, Class notes & Summaries

PART 1 Question 1 0 out of 4 points Evidence from empirical studies of long-run cost-output relationships lends support to the: a. existence of a non-linear cubic total cost function b. hypothesis that marginal costs first decrease, then gradually increase over the normal operating range of the firm c. hypothesis that total costs increase quadratically over the ranges of output examined d. hypothesis that total costs increase linearly over some considerable range of output examined e. none of th...

Question 1 4 out of 4 points Consider the game known as the Prisoner's Dilemma. What's the dilemma? a. By both not confessing, both get to the cooperative solution and minimize time in prison. b. By both confessing, both get to the noncooperative solution and both serve significant time in prison. c. As a group, they are better off cooperating by not confessing, but each player has an incentive to be first to confess in a double cross. d. The problem is that the spies should never have been ca...

Question 1 0 out of 4 points Evidence from empirical studies of long-run cost-output relationships lends support to the: a. existence of a non-linear cubic total cost function b. hypothesis that marginal costs first decrease, then gradually increase over the normal operating range of the firm c. hypothesis that total costs increase quadratically over the ranges of output examined d. hypothesis that total costs increase linearly over some considerable range of output examined e. none of the above...

Question Question 1 4 out of 4 points 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: Selected Answer: Correct Answer: Question 2 4 out of 4 points For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use? Selected Answer: Correct Answer: Question 3 4 out of 4 points The type of economic indicator th...

Question Question 1 4 out of 4 points Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0?(shares outstanding) = ??t=1 (? t ) / (1 ke)t Real Option Value. Selected Answer: Correct Answer: Question 2 4 out of 4 points The moral hazard in team production arises from Selected Answer: Correct Answer: Question 3 4 out of 4 points Economic profit is defined as the difference between revenue and ____. Selected Answer: Correct Answer: Question 4 4 out o...

Question Question 1 4 out of 4 points Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0?(shares outstanding) = ??t=1 (? t ) / (1 ke)t Real Option Value. Selected Answer: Correct Answer: Question 2 4 out of 4 points The moral hazard in team production arises from Selected Answer: Correct Answer: Question 3 4 out of 4 points Economic profit is defined as the difference between revenue and ____. Selected Answer: Correct Answer: Question 4 4 out o...