• Question 1
In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
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.
Selected Answer:
linear; increase linearly
Correct Answer:
linear; are constant
• Question 3
The short-run cost function is:
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:
Selected Answer:
survivorship analysis.
Correct Answer:
survivorship analysis.
• Question 5
In determining the shape of the cost-output relationship only ____ depreciation is relevant.
Selected Answer:
time
Correct Answer:
usage