The degree of operating leverage Essay Example for Free

The degree of operating leverage Essay1. The degree of operating leverage is equal to the ____ change in ____ divided up by the ____ change in ____.2. In the linear breakeven model, the difference between merchandising price per unit and variable cost per unit is referred to as3). Break-even analysis usually assumes all of the following boot out4).The short-run cost function is5). In the short-run for a purely competitive market, a manufacturer allowing stop production when6). In the long-run, firms in a monopolistically competitive industry will7). A search good is8). All of the following are truthful for both competition and monopolistic competition in the long run, except one of them. Which is it?9). Regulatory agencies engage in all of the following activities except _______.10). 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 more often than non are charged ____ rates.11). When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation.13). In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale. If price were set equal to marginal cost, so14). A(n) ____ is characterized by a relatively small number of firms producing a product.15). In the Cournot duopoly model, each of the two firms, in determining its profit-maximizing price-output level, assumes that the other firms ____ will not change. 16). The existence of a kinked demand curve under oligopoly conditions may result in17). Conscious parallelism of action among oligopolistic firms is an example of ____.18). A key to analyzing subgame complete equilibrium strategy in sequential games is19). Credible promises and hostage mechanisms can support a continuous s tream of cooperative exchanges except when20). In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are credibility-enhancing mechanisms except21). In a game, a dominated strategy is one whereThe segmenting of customers into several small groups such as household, institutional, commercial, and industrial users, and affording a different rate instrument for each group is known as 22) The following are possible examples of price discrimination, EXCEPT23). The optimal mark-up is m = -1/ (E+1). When the mark-up on cookware equals 50%, hence demand elasticity (E) for cookware is24). To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.25). Non-redeployable durable assets that are dependent upon unique complementary and perfectly redeployable assets to achieve substantial value-added will typical ly be organized as26). When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____.27). When manufacturers and distributors establish credible commitments to one another, they often employ28). Reliant assets are always all of the following except29). The sentiment for increased deregulation in the posthumous 1970s and early 1980s has been felt most significantly in the price regulation of30). The antitrust laws regulate all of the following business decisions except ____.31). The ____ is equal to the some of the squares of the market shares of all the firms in an industry.32). The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.33). The ____ depicts the risk-return relationship in the market for all securities34). Any curr ent outlay that is expected to yield a flow of benefits beyond one year in the future is35). In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except36). Which of the following would not be classified as a capital expenditure for decision-making purposes?