Governance mechanisms Essay

1). Evidence from empirical studies of short-run equal-output familys lends support to the2). Break-even analysis commonly assumes all of the pastime except3). In determining the shape of the cost-output relationship only ____ depreciation is relevant. serve well4). In the linear breakeven model, the breakeven sales vividness (in dollars) can be found by multiplying the breakeven sales volume (in units) by5). A firm in pure competition would shut trim back whenSelected Answer price is less than average variable cost make better Answer price is less than average variable cost6). Buyers lodge that the temporary w arehouse seller of unbranded computer equipment will Answer7). An experience good is one that8). Experience goods are products or operate9). The demand curve facing the firm in ____ is the same as the industry demand curve.10). In the electric power industry, residential customers bemuse relatively ____ demand for electricity compared with large industrial users. Bu t contradictory to price discrepancy, large industrial users generally are charged ____ rates.11). The use by telephone companies of charging lower long-distance rates at shadow than during the day is an example of12). Of the following, which is not an economic rationale for public utility(prenominal) regulation?13). If a cartel seeks to maximize profits, the securities industry share (or quota) for to each one 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 structure?15). well-nigh market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful? 16). Even perfect cartels tend to be unstable because17). In making promises that are not guaranteed by 3rd parties and in imposing penalties that are not implemented by third parties, all of the following are credibility-enhancing mechanisms except18). The captives Dilem ma involves two spies who are held in separate soundproof rooms. Buteven if the two spies could communicate, what makes it difficult for them to achieve the cooperative resolution (both not confessing)?19). When airlines post prices on an electronic bulletin board at 800 a.m. each morning, the decision-makers are engaged in 20). To trust a potential cooperator until the first defection and then never get together 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 profitable when22). Firms that pick out a cover charge for their customers and charge for each item they get as well are exhibiting23). The optimal 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 mot ivated by all of the following except27). Agency problems progress 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 soul (or group) is not a direct participant.30). The lower the barriers to entry and exit, the more roughly a market structure fits the ____ market model.31). The ____ is equal to the some of the squares of the market shares of all the firms in an industry.32). ____ yields the same results as the theory of perfect competition, unless requires substantially fewer assumptions than the perfectly competitive model.33).In determining the optimal hood budget, one should choose those projects whose ____ exceeds the firms ____ cost of capital.34). The ____ method assumes that the cash full stops over the life of the project are reinve sted at the ____.35). Any current outlay that is expected to yield a flow of benefits beyond one year in the future is36). Capital expendituresa