Question 1
In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
Answer
Selected Answer:
contribution margin per unit
Correct Answer:
contribution margin per unit
Question 2
A ____ total cost function implies that marginal costs ____ as output is increased.
Answer
Selected Answer:
linear; increase linearly
Correct Answer:
linear; are constant
Question 3
The short-run cost function is:
Answer
Selected Answer:
relevant to decisions in which one or more inputs to the production process are fixed
Correct Answer:
relevant to decisions in which one or more inputs to the production process are fixed
Question 4
In a study of banking by asset size over time, we can find which asset sizes are tending to become more prominent. The size that is becoming more predominant is presumed to be least cost. This is called:
Answer
Selected Answer:
survivorship analysis.
Correct Answer:
survivorship analysis.
Question 5
In determining the shape of the cost-output relationship only ____ depreciation is relevant.
Answer
Selected Answer:
time
Correct Answer:
usage
Question 6