Questions:
Question 1
The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____.
Question 2
In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
Question 3
Theoretically, in a long-run cost function:
Question 4
The short-run cost function is:
Question 5
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:
Question 6
George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000. If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year.
Question 7
If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____.
Question 8
The problems of asymmetric information exchange arise ultimately because
Question 9
Long distance telephone service has become a competitive market. The average cost per call is $0.05 a minute, and it's declining. The likely reason for the declining price for long distance service is: