Question

Multiple Choice

(18) One school of thought concerning anti-trust argues that rather than ensuring efficiency, anti-trust laws are really aimed at ________.

A.  outlawing all monopolies whether they perform “bad acts” or not

B.  protecting small independent firms against large corporations

C. restricting interlocking directorates

D.  price differentiation due to differences in quality and cost

(28) The method of estimating long-run costs in which knowledgeable professionals familiar with production facilities and processes calculate optimal combination of inputs to produce given quantities and then estimate costs is known as ________.

A.  engineering cost estimating

B.  the survivorship method

C.  None of these answers is correct.

D.  regression analysis

(29) Which of these statements is true about costs in the long run?

A.  Variable costs tend to be greater than fixed costs.

B.  Fixed costs tend to be greater than variable costs.

C.  All costs are fixed costs.

D.  All costs are variable costs.

(33) When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider how to isolate the effect of different variables that influence demand.

A. True

B. False

Answer 1

18. One school of thought concerning anti-trust argues that rather than ensuring efficiency, anti-trust laws are really aimed at B. protecting small independent firms against large corporations

Antirust law is a collection of federal and state government laws that regulates the conduct and organization of business corporations, generally to promote competition for the benefit of consumers.

28.The method of estimating long-run costs in which knowledgeable professionals familiar with production facilities and processes calculate optimal combination of inputs to produce given quantities and then estimate costs is known as A. Engineering cost estimating

The engineering method of cost estimation is based directly on the physical relationship expressed in the production function for a particular product. On the basis of the production function, and input prices, the optimum input combination for producing any given quantity of a given product is determined. The cost curve is then formulated by multiplying each input in the so obtained least cost combinations by its price and summing, to develop the cost function.

29.Which of these statements is true about costs in the long run?

D. All costs are variable costs.

Since all inputs are variable in the long run, that is, they can be varied all costs are also variable in the long run. There are no fixed variables and no fixed costs in the long run.

33.When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider how to isolate the effect of different variables that influence demand.

A. True

The market approach for understanding consumer demand says that it is important to understand effects of different variabels in isolation.