elasticity of demand Inelastic demand curve will be less than 1 Inelastic demand curve will be less than 1 Elastic demand curve will be greater than 1 Elastic demand curve or Kinked demand curve will be greater than 1 Is there a presence of economic profits? No Yes Yes Yes Introduction: Printing is one of the most highly competitive industries in America today there are literally thousands of printers in the United States‚ they range from a small mom and pop operation to multinational
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is at max point Managers take production right up to the point where TC=TR; if they can [2] Oligopolies can benefit most from going past the profit maximising output because it gives them a market share advantage over their competition. The economic climate can affect managers’ ability to deploy this tactic. If a recession is on the cards then shareholders will be anxious and keeping them and profits high will be a priority to which managers must abide to keep their position. The Downsides:
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- Financial flows Deregulation of financial markets (less rules and regulations in currency markets and foreign investment) led to a rapid increase in FDI and portfolio investment. Investment makes economies more integrated as economic changes in one country influence others (CONTAGION e.g. negative effects such as the GFC and the EDC or positive effects such as new technology and booming economies). The main benefits are that it enables countries to finance their domestic economy even if domestic
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Economics 201A: Economic Theory (first half ) Tu-Th 12:30–2:00 150 GSPP 1 Description Economics 201A is the first semester of the required microeconomic theory sequence for first-year Ph.D. students in the economics department. The first half of the fall semester focuses on choice theory‚ consumer theory‚ and social choice. The second half will be taught by Chris Shannon and will cover general equilibrium. (A separate syllabus will be distributed for the second half.) In the spring‚ the
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Cluster Theory and Industry Policy: An Overview Author: Stanislav Bucifal Australian National University September 2008 Executive Summary This paper examines the potential of cluster theory to inform industry policy. In the economic sense‚ clusters are production networks of strongly interdependent firms linked to each other in a value-adding production chain (Roelandt et al 1999). A defining characteristic of clusters is the presence of positive externalities which enhance firm competitiveness
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BEC 1034 MICROECONOMICS TUTORIAL 1 (Chapter 1: Ten Principles of Economics) 1. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies‚ wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. 2. "There is no such thing as a free lunch‚" is used to illustrate the principle that a. goods are scarce. b. people face
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- 3 - N05/3/ECONO/HP1/ENG/TZ0/XX/M Paper Specific Markscheme In addition to the assessment criteria use the paper-specific markscheme below. Award up to the maximum marks as indicated. Examiners should be aware that candidates may take a different approach‚ which if appropriate should be fully rewarded. 1. (a) Explain the differences between monopolistic competition and oligopoly as market structures. [10 marks] • large number of firms (m.c) versus a few dominant firms (oligopoly) • differentiated
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ECO 252 -- HW 9 Questions 1. Which of the following events would cause a decrease in the equilibrium interest rate in the short-run money market? For each event‚ simply state YES or NO. a. The price level increases‚ Ceteris Paribus. b. The FOMC conducts open market sales of existing bonds‚ Ceteris Paribus. c. The aggregate demand shifts to the left‚ Ceteris Paribus. d.The Fed increases the required reserve ratio‚ Ceteris Paribus. e. The Fed increases the money supply‚ Ceteris
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Tiuana Goodfella Essay 3 An American social entrepreneur‚ David Green‚ recently stated the following: “Let’s face it. The market economy is based on a fundamental deception: I (a company) know how much it costs to make something‚ and I’m going to fool you‚ the consumer‚ into paying as much as possible. I find this assertion false and misguided. While some markets are more desirable than others‚ no one is being fooled into paying as much as possible. In the following essay I will evaluate each
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REVIEW: MIDTERM #2 MICROECONOMIC PRINCIPLES-1102‚ section #11 Professor Ardy Lynn Wurtzel SEAEINNSruEB 1. Please use Sarah’s Utility chart below to determine what combination of Clothing and Shoes would maximize her utility (find her consumer eq uilibrium)-10pts. [1lzt: Complete the charl’s (1) MU/$ column‚ the (2) TU (Clothing & Shoes) column and the (3) Income Spent column. This will allow you to solve for consumer equilibrium.] Price (per unit): S1O.0O MU (cr)/s SARAH’STOTAL INEOME P-rjeE@_Ss
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