Ecn 601 t - Study guides, Class notes & Summaries

1. Question:Theopportunity cost ofanactionis: 2. Question:Priceceilingscause: 3. Question:Acompanyinvested$400,000inatechnologythatreducedtheoverallcostsof production by reducing their cost per unit from $2 to $1.85. Later, amanagerhasanopportunitytooutsourceproductiontoanothercompanyatacostperunitof$1.75.Ifyouare themanager,you: 4. Question:Anincreaseinthepriceofacomplementshiftsthedemandcurvetothe: 5. Question:Afirmsells1,000unitsperweek.Itcharges$15perunit,theaveragevariablecostsare$10,an...

1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15% success mak...

1. Question:Forjointlyownedsubstituteproducts,cannibalizationleads toMR MC. 2. Question:Use the table provided to answer the following question. If the groups are of equal size andthe firm can onlysetoneprice,howshould the firmpricethehigh-end wok? 3. Question:TheoptimalstrategyinaVickeryauctionisto: 4. Question:Whichofthefollowingisascreenagainstadverseselection? 5. Question:The general rule to increase profits when two close complementary brands are jointly ownedis: 6. Question:Indirectpr...

1. Question:Theopportunity cost ofanactionis: 2. Question:Priceceilingscause: 3. Question:Acompanyinvested$400,000inatechnologythatreducedtheoverallcostsof production by reducing their cost per unit from $2 to $1.85. Later, amanagerhasanopportunitytooutsourceproductiontoanothercompanyatacostperunitof$1.75.Ifyouare themanager,you: 4. Question:Anincreaseinthepriceofacomplementshiftsthedemandcurvetothe: 5. Question:Afirmsells1,000unitsperweek.Itcharges$15perunit,theaveragevariablecostsare$10,an...

1. Question:TheoptimalstrategyinaVickeryauctionisto: 2. Question:Tomwantstoavoidanyaccidentsontheworkfloorofhisfactory.Ifanaccidentdoesoccur,itwouldcosthim $500,000 in damages. Installing safety equipment would decrease the probability of an accidentoccurring from 20% to 10%. However, the equipment costs $20,000 to install. What is his expected lossafterinstalling thesafetyequipment? 3. Question:Whichofthefollowingisaviolationofantitrustlaws? 4. Question:Whatisitcalledwheneachadditionalworker...

1. Question:Forjointlyownedsubstituteproducts,cannibalizationleads toMR MC. 2. Question:Use the table provided to answer the following question. If the groups are of equal size andthe firm can onlysetoneprice,howshould the firmpricethehigh-end wok? 3. Question:TheoptimalstrategyinaVickeryauctionisto: 4. Question:Whichofthefollowingisascreenagainstadverseselection? 5. Question:The general rule to increase profits when two close complementary brands are jointly ownedis: 6. Question:Indirectpr...

1. Consider the following sequential game in which player 1 selects first between A, B, C, and D,andplayer2selects secondeitherXorY.Whichstrategy doesplayer1selectinequilibrium? 2. fr1me05h.Ch15-2.01: What is the Nash equilibrium of the following game? 3. fr1me05h.Ch15-3.01: Which of the following is true of a prisoner’s dilemma? 4. Consider the following game representing hockey team’s choices to wear a helmet or not prior to the NHL mandating the wearing of helmets. 5. What is the Nash...

CHAPTER 17 1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15%...

1. Question:Indirectpricediscrimination differsfromdirectprice discriminationbecause: 2. Question:What is it called when each additional worker hired contributessuccessively smalleramountsofoutput? 3. Question:Jim has a better chance of having his offer accepted, since the seller doesnothaveanyoutsideoffers. 4. Question:For a production function with a diminishing, but positive, marginal productoflabor: 5. Question:Nashequilibriumis: 6. Question:Moralhazardimpliesthat: 7. An HVAC company i...

Problems: Chapters 7, 8, and 9 1. Individual Problems 7-3 The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $15,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of $5,000). Note: Assume Q denotes the quantity produced of a particular design. Which of the following best represents the average cost function for producing any single design? Based on this information, prod...