Inputs to the production process are fixed

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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

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