BEC Essentials

Question 1

What is the shape of the demand curve a firm faces in a perfectly competitive market

Answer 1

Horizontal

Here a firm is a “price taker” that can sell any amount of commodity supplied at the established market price

Question 2

Shape of demand curve in a monopoly, monopolistic competition, and oligopoly

Answer 2

Negatively sloped

Question 3

BEP in Units

Answer 3

Fixed Costs / Contribution Margin

Question 4

Profitability Index Formula

Answer 4

PV of after-tax Cash Flows / Original Cash Investment

Question 5

Payback Period Formula

Answer 5

Initial Investment / Annual Cash Inflows

Question 6

GDP is a measure of

Answer 6

The market value of all final goods and services produced for exchange in the DOMESTIC economy during a year

Question 7

Field Warehouse Agreement

Answer 7

Inventory that serves as security for a borrowing remains with the borrower, but under control of independent third party

Question 8

Terminal Warehouse Agreement

Answer 8

inventory is moved to a public warehouse and placed under the control of an independent 3rd party

Question 9

Incremental cost

Answer 9

aka differential cost, is the difference in total cost between two decision alternatives

Question 10

What is the regression equation?

Answer 10

Y = A + Bx

Y is the dependent variable
A is the point where the regression intercepts the Y access
B is the slope of the line
x is the independent variable

Question 11

Master File

Answer 11

maintain balances by accounts just as ledgers do in manual systems