Ecn 601 exam Study guides, Class notes & Summaries

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...

2 Tom wants to avoid any accidents on the work floor of his factory. If an accident does occur, it would cost him $500,000 in damages. Installing safety equipment would decrease the probability of an accident occurring from 20% to 10%. However, the equipment costs $20,000 to install. What is his expected loss after installing the safety equipment?

ECN 601 Topic 8 Exam 2 Formula Sheet

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: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...

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...

1. Acquiring a firm that sells a substitute good would make the demand curve for your original product ~ 2. The general rule to increase profits when two close substitute brands are jointly owned is ~ 3. After acquiring closely substitutable product brands, a firm can successfully raise prices on both of the brands without losing much of its total sales because ~ 4. Which of the following is an example of price discrimination? 5. The practice of buying a firm’s good in one market at a low ...