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1. What are the characteristics of a perfect competition? When does a perfectly competitive firm earn profit and when do they incur loss?
2. Explain the relationship between average revenue, marginal revenue and price in a perfectly competitive market. How do we calculate them?
3. What are the reasons for monopoly? Please provide examples for each. Also how does this market is different from perfectly competitive market? Make sure to mention all relevant points.
4. What happens in a monopoly market in the short-run and in the long-run?
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Question 1Read the article "Croissantonomics" and use the demand and supply model with graphs to demonstrate the changes in the market for croissants at different times of the year. Briefly explain.
Should the gold standard be reinstated to combat currency volatility?
the buyer values and seller costs for another experiment in which students are buying and selling used textbooks. In this experiment, the seller pays the tax. Suppose that traders who are indifferent between trading and not trading go ahead and trade..
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Suppose a chocolate bar manufacturer promotes its products by advertising and opportunity to win a ‘free car’. Is this car free because the winner pays zero for it?
Consider the market for Idaho potatoes. The supply is very inelastic in the short run since farmers in Idaho cannot increase or decrease the supply of potatoes in the fall since the supply depends on how many seed potatoes they put in the ground i..
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