Governance mechanisms Essay

1). Evidence from empirical studies of short-run comprise-output relationships lends support to the2). Break-even abstract usually assumes all of the adjacent ask out3). In determining the hurl of the make up-output relationship only ____ depreciation is relevant. Answer4). In the linear breakeven model, the breakeven gross sales majority (in dollars) can be found by multiplying the breakeven sales volume (in units) by5). A firm in pure competition would exclude down whenSelected Answer toll is less than average variable cost Correct Answer price is less than average variable cost6). Buyers anticipate that the temporary w behouse seller of unbranded computer equipment go forth Answer7). An experience good is one that8). Experience goods are products or services9). The demand curve facing the firm in ____ is the alike(p) as the industry demand curve.10). In the electric power industry, residential customers have relatively ____ demand for electricity compared with large i ndustrial users. nonwithstanding contrary to price discrimination, large industrial users generally are charged ____ rates.11). The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of12). Of the following, which is not an economic rationale for state-supported utility regulation?13). If a cartel seeks to maximize profits, the market conduct (or quota) for each firm should be set at a level such that the ____ of all firms is identical. 14). Which of the following is an example of an oligopolistic market social organization?15). Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more than successful? 16). thus far ideal cartels tend to be unstable because17). In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are credibility-enhancing mechanisms except18). The Prisoners Dilemma involves two spies who are held in sort out soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the concerted solution (both not confessing)?19). When airlines post prices on an electronic bulletin shape up at 800 a.m. each morning, the decision-makers are engaged in 20). To self-assurance a potential cooperator until the first defection and then never cooperate thereafter is21). Vacation tours to Europe invariably package visits to disparate regions cities, mountains, and the seaside. Bundling, a type of second degree price discrimination, is most moneymaking when22). Firms that have a cover charge for their customers and charge for each point they purchase as well are exhibiting23). The best mark-up is m = -1/ (E+1). When the mark-up on cookware equals 50%, then demand elasticity (E) for cookware is24). Third-degree price discrimination exists whenever25). Governance mechanisms are designed26) . Vertical integration may be motivated by all of the following except27). federal agency conundrums appear in many settings within a firm. All of the following are examples, except which is NOT a good example of this problem?28). Reliant assets are always all of the following except29). ____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.30). The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.31). The ____ is equal to the slightly of the squares of the market shares of all the firms in an industry.32). ____ yields the same results as the theory of ameliorate competition, but requires substantially fewer assumptions than the perfectly competitive model.33).In determining the optimal capital budget, one should choose those projects whose ____ exceeds the firms ____ cost of capital.34). The ____ method assumes that the cas h flows over the life of the project are reinvested at the ____.35). Any current outlay that is expected to yield a flow of benefits beyond one year in the future is36). swell expendituresa