Question 1

​Using the graphical method to demonstrate the break-even point,which of the following statements is NOT true?

Accepted Answer

A)  ​constant selling price per unit are represented by TR 
B)  ​constant variable cost per unit is represented by TC 
C)  ​variable costs increase at a constant rate of VC per unit of output 
D)  ​below the point where TR and TC intersect,operating profits are realized 
E)  ​all of these are true 
A)  ​constant selling price per unit are represented by TR 
B)  ​constant variable cost per unit is represented by TC 
C)  ​variable costs increase at a constant rate of VC per unit of output 
D)  ​below the point where TR and TC intersect,operating profits are realized 
E)  ​all of these are true

Question 2

The linear breakeven model excludes ____ from the analysis.

Accepted Answer

A)  financing costs 
B)  taxes 
C)  contribution margin 
D)  a and b only 
E)  a,b,and c 
A)  financing costs 
B)  taxes 
C)  contribution margin 
D)  a and b only 
E)  a,b,and c

Question 3

Break-even analysis usually assumes all of the following except:

Accepted Answer

A)  in the short run,there is no distinction between variable and fixed costs. 
B)  revenue and cost curves are straight-lines throughout the analysis. 
C)  there appears to be perfect competition since the price is considered to remain the same regardless of quantity. 
D)  the straight-line cost curve implies that marginal cost is constant. 
E)  both c and d 
A)  in the short run,there is no distinction between variable and fixed costs. 
B)  revenue and cost curves are straight-lines throughout the analysis. 
C)  there appears to be perfect competition since the price is considered to remain the same regardless of quantity. 
D)  the straight-line cost curve implies that marginal cost is constant. 
E)  both c and d

Question 4

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

Accepted Answer

A)  constant selling price per unit 
B)  decreasing variable cost per unit 
C)  fixed costs are independent of the output level 
D)  a single product (or a constant mix of products)is being produced and sold 
E)  all costs can be classified as fixed or variable 
A)  constant selling price per unit 
B)  decreasing variable cost per unit 
C)  fixed costs are independent of the output level 
D)  a single product (or a constant mix of products)is being produced and sold 
E)  all costs can be classified as fixed or variable

Using the graphical method to demonstrate the break-even point,which of the following statements is NOT true?

The linear breakeven model excludes ____ from the analysis.

Break-even analysis usually assumes all of the following except:

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

Introduction and Goals of the Firm

Fundamental Economic Concepts

Demand Analysis

Estimating Demand

Business and Economic Forecasting

Managing in the Global Economy

Production Economics

Cost Analysis

Prices,output,and Strategy: Pure and Monopolistic Competition

Price and Output Determination: Monopoly and Dominant Firms

Price and Output Determination: Oligopoly

Best-Practice Tactics: Game Theory

Pricing Techniques and Analysis

Contracting,governance,and Organizational Form

Government Regulation

Long-Term Investment Analysis

Filters

Exam 9: Applications of Cost Theory

​Using the graphical method to demonstrate the break-even point,which of the following statements is NOT true?

The linear breakeven model excludes ____ from the analysis.

Break-even analysis usually assumes all of the following except:

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

Introduction and Goals of the Firm

Fundamental Economic Concepts

Demand Analysis

Estimating Demand

Business and Economic Forecasting

Managing in the Global Economy

Production Economics

Cost Analysis

Prices,output,and Strategy: Pure and Monopolistic Competition

Price and Output Determination: Monopoly and Dominant Firms

Price and Output Determination: Oligopoly

Best-Practice Tactics: Game Theory

Pricing Techniques and Analysis

Contracting,governance,and Organizational Form

Government Regulation

Long-Term Investment Analysis

Filters

Using the graphical method to demonstrate the break-even point,which of the following statements is NOT true?