(i) Collusion is common among oligopoly firms. Discuss the factors that make collusion likely to succeed. Use the relevant industry to support your answer. Oligopolistic firms are known to be independent as there are only a few sellers dominating the market; therefore changes in the price‚ sales or output of a firm will surely affect their competitors. The telecommunication industry in Malaysia exhibits the oligopoly market. For instance‚ Maxis or Digi customers are more likely to subscribe to Celcom
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ECON111 Page 115 1. Define the price elasticity of demand and the income elasticity of demand Price elasticity of demand is a measure of how much quantity demanded of a good responds to a change in the price of that good. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. Income elasticity of demand is a measure of how much quantity demanded of a good responds to a change in consumer’s income. It is calculated as the
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CHAPTER 11 QUESTIONS 1. Distinguish among depreciation‚ depletion‚ and amortization expenses. Depreciation refers to the cost allocation of tangible long-term assets; depletion refers to the cost allocation of natural resources; and amortization refers to the cost allocation of intangible assets. All three terms have similar underlying principles governing their use. 2. What factors must be considered in determining the periodic deprecation charges that should be made for a company’s depreciable
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Economics and financial management consist of two major components: microeconomics and macroeconomics. These two components are interchangeable and act as the foundation to the core concepts to understanding the enormous arena of the financial world. Macroeconomics can be defined in several business terms‚ but simple put‚ it is the branch of economics that studies the economy of consumers or households or individual firms. Microeconomics basically deals with the choices and assessments made by businesses
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Article Critique MBA 6008 November 27‚ 2011 Reichheld‚ Fred (2006). The Microeconomics of Customer Relationships. MIT Sloan Management Review. Vol. 47‚ No. 2 Article Summary The purpose of this article author‚ Fred Reichheld discusses the microeconomics of customer relationships. How customer relationships affect a company’s growth rate and the financial performance. Various companies like‚ General Electric Company uses "net-promoter score" as a metric tool to determine the customer
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Essential Graphs for Microeconomics Basic Economic Concepts ( Production Possibilities Curve Nature & Functions of Product Markets ( Demand and Supply: Market clearing equilibrium (Floors and Ceilings (Consumer and Producer Surplus (Effect of Taxes Theory of the Firm (Short Run Cost (Long Run Cost
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Sample questions for the Microeconomics Midterm Exam Summer 2013 The exam will cover chapters 1‚ 2‚ 3‚ 4‚ 5 and 6 There will be 100 minutes allowed to complete the exam. You will have three types of questions: multiple choice‚ true or false and explain‚ and analysis problems. True or False and Explain (Remember that there is one mark for True or False and 4 marks for your explanation) 1. Economics is only interested in fairness not efficiency. 2. If the marginal
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BEO2264 MICROECONOMIC ANALYSIS TUTORIAL QUESTIONS TOPIC 1 Question 1 (a) Discuss how microeconomic theory can help to explain the effects of lowering the minimum wage for teenage employees in the retail industry (b) How is the usefulness of a theory evaluated (c) “Observation without theory and theory without observation are equally useless in explaining the complexities of the real world”. Discuss. Question 2 (a) Distinguish between positive analysis and normative analysis.
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Microeconomics Positive economics This is the use of economics to describe the activities which are happening in the world It is also called “what is” or “descriptive” Normative economics This is the use of economics to recomment changes. It means advicing on how things “shoud be” It is also called prescriptive analysis The market economy An economy that is entirely run by the market forces demand and supply and there is no government involvement in the economy A pure market economy
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Southwest Airlines and Microeconomics John Divler Rasmussen College Author Note This research is being submitted on June 14‚ 2010‚ for Mr. Bergeen’s Microeconomics course at Rasmen College by John Divler. Southwest Airlines and Microeconomics Southwest Airlines was created in 1967 and is headquartered in Dallas‚ TX. Southwest offers flights to their passengers to get them to their destinations when they want to get there‚ on time‚ at the lowest possible fare. The advantage that Southwest
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