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ACC 568 Final Exam Guide Part 1
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ACC 568 Final Exam Guide Part 1

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ACC 568 Final Exam Guide Part 1

Question 1

Which of the following is not an assumption of the linear breakeven model:                               

Question 2

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 3

In the linear breakeven model, the breakeven sales volume (in dollars) can be found by multiplying the breakeven sales volume (in units) by:                               

Question 4

In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:                               

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

Theoretically, in a long-run cost function:                        

Question 7

The price for used cars is well below the price of new cars of the same general quality.  This is an example of:                         

Question 8

Experience goods are products or services                                   

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:                  

Question 10

All of the following are mechanisms which reduce the adverse selection problem except ____.                   

Question 11

In the short-run for a purely competitive market, a manufacturer will stop production when:      

Question 12

Uncertainty includes all of the following except ____.                             

Question 13

An "experience good" is one that:                         

Question 14

The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:                                  

Question 15

Of the following, which is not an economic rationale for public utility regulation?                      

Question 16

Regulatory agencies engage in all of the following activities except _______.                             

Question 17

Declining cost industries                           

Question 18

The demand curve facing the firm in ____ is the same as the industry demand curve.                

Question 19

In the electric power industry, residential customers have relatively ____ demand for electricity compared with large industrial users.  But contrary to price discrimination, large industrial users generally are charged ____ rates.                        

Question 20

Barometric price leadership exists when                           

Question 21

A cartel is a situation where firms in the industry                         

Question 22

Even ideal cartels tend to be unstable because                              

Question 23

In the Cournot duopoly model, each of the two firms, in determining its profit-maximizing price-output level, assumes that the other firm's ____ will not change.                        

Question 24

Some industries that have rigid prices.  In those industries, we tend to                             

Question 25

In a kinked demand market, whenever one firm decides to lower its price,

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