scale. b. where multi-plant economies of scale equal one. c. where multi-plant economies of scale exceed one. d. capacity. 6. In a perfectly competitive market: a. sellers and buyers have perfect information. b. entry and exit are difficult. c. sellers produce similar‚ but not identical products. d. each seller can affect the market price by changing output. 7. In the long run‚ firms will exit a perfectly competitive industry if: a. excess profits exceed zero. b. excess profits
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Oligopoly An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher costs for consumers.[1] With few sellers‚ each oligopolist is likely to be aware of the actions of the others. The decisions of one firm therefore influence and are influenced by the decisions of other firms. Strategic planning by oligopolists needs to take into account the
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"up-selling") is a sales technique whereby a seller induces the customer to purchase more expensive items‚ upgrades‚ or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable services or products but can also be simply exposing the customer to other options that were perhaps not considered previously. Upselling implies selling something that is more profitable or otherwise preferable for the seller instead of‚ or in addition to‚[1] the original
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MECO111 – Fall 2012/13 -Practice MCQs for the Midterm for SECTIONS 3 AND 4 -55 MCQs 1).Consumer surplus a. is the amount of a good that a consumer can buy at a price below equilibrium price. b. is the difference between the amount that a consumer actually pays for a good and the amount that the consumer is willing to pay for the good. c. is the number of consumers who are excluded from a market because of scarcity. d. measures how much a buyer values a good. ANS- B 2).Suppose Bart
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Discrimination Definition of ’Price Discrimination’ is a pricing strategy that charges customers different prices for the same product or service. In pure price discrimination‚ the seller will charge each customer the maximum price that he or she is willing to pay. In more common forms of price discrimination‚ the seller places customers in groups based on certain attributes and charges each group a different price. Price discrimination allows a company to earn higher profits than standard pricing
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Table 1.0: Answer for the MCQs Question # 1 2 3 4 5 6 7 8 9 10 Answer b c a c b c e d b b 1). Nihal takes a year off from his job to train for the Asian Games 400 meters event to be held one year later. The annual income from his job is Rs. 600‚000. His training costs (coach’s fee) amount to Rs. 180‚000 and meal expenses amount to another Rs. 200‚000. Being a promising athlete‚ the Ministry of Sports has given nihal a sports scholarship worth Rs. 100‚000.¬¬ a) Assuming the meal expenses are
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budget line is higher‚ this means that the consumer afford to buy good X compare to good Y. While if the slope of the budget line is lower‚ the consumer afford to buy good Y compare to good X. From the graph‚ we can see that the consumer is not maximizing the satisfaction. This is because the indifference curves are inside the budget line and it intersect at two points which are a and b. At point b‚ the slope of the indifference curve (MRSxy ) is less than the slope of the budget line (Px/Py). While
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Commission (SEC). This is conflict of interest‚ because SEC is a federal agency. g. The bail out by the Obama Administration. They contributed to Obama’s campaign. h. Conflict of interest in the selection of ABACUS portfolio. The seller was involved in the selection of the portfolio. The
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Why is it that a profit maximizing businessman would always raise prices when facing an inelastic demand curve but might or might not raise price when facing an elastic demand curve? Explain and justify your answers in detail. Elasticity and profit maximization behavior When facing an inelastic demand curve‚ a profit maximizing businessman would always raise price because increase in price will bring about increase in total revenue. On the other hand‚ when facing an elastic demand curve‚ he might
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Difference between islamic banking and conventional/ commercial banking BUSHRA TABASSUM IQRA ARSHAD SIDRA MEHAK MEHAK KHAN EMAD KHAN ISLAMIC BANKING: Islamic banking refers to a system of banking activity that is consistent with Islamic law (sharia’h) principles and guided by Islamic economics SHARI’AH – INTRODUCTION • What do we mean when we say ISLAMIC? We certainly mean an • Act‚ action‚ activity or thing that is in conformity with islamic • Teachings; • And when we say shari’ah what do we
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