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The model of perfect competition starts with the assumptions of the traditional neoclassical model and then adds some further assumptions. List the four main additional assumptions of the model of perfect competition.
Consider a scoring rule in which the preferred option is given one point and all others none.
Consider a Cournot duopoly with the inverse demand P = 260 2Q. Two firms compete choosing their quantities. Both firms have constant marginal and average cost MC = AC = 20. a. Find each firm's best response function.
Suppose that every additional five percentage points in the investment rate (I/GDP) boost economic growth by one percentage point. Assume also that all investment must be financed with consumer saving.
Market research has revealed the following information about themarket for chocolate bars: The demand schedule can berepresented by the equation Qd =1,600 - 300P whereQd is the quantity demanded and P is the price.
The consumer's utility function is U(x, y) = 3x + 2y. Let Px = 2, I = 12. (a) If price Py is too high, the consumer will not want to purchase any y. Find the lowest price Py at which the consumer ceases to purchase y.
The cross section of an extruded beam is a hollow square of side α = 3 in. and thickness t = 0.25 in. For a vertical shear of 15 kips, determine the maximum shearing stress in the beam and sketch the shear flow in the cross section.
Use your supply and demand diagrams to illustrate what happens to the wage gap between the two types of workers.
Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2C1 where C1 = possible consumption in year 1 and C2 =..
Suppose the economy is in a short-run equilibrium where Y
What additional procedures would an auditor perform if a majority of sales came from a single customer?
How might the good reputation of existing firms serve as a barrier to the entry of new firms?
Television channel operating profits vary from high as 45 to 55 percent at MTV and Nickelodon down to 12 to 18 percent to NBC and ABC. Provide a Porter Five Forces analysis of each type of network. Why is MTV so profitable relative to major networ..
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