True or False: Price-taker and price-searcher models necessarily fail to incorporate imperfect information and uncertainty into their assumptions.
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A: Price elasticity is the responsiveness of the quantity demanded to a change in price.
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A: Suppose a company sells 224 units of inventory for $10.33 each. However, if you sell 244 units, your…
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True or False: Price-taker and price-searcher models necessarily fail to incorporate imperfect information and uncertainty into their assumptions.
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- What do you understand by the concepts of intra temporal choice models in Managerial Economics? This question was not addressed in the answer providedAdapt the two-sided search model to include government activity as follows. Suppose that the government can operate firms, subject to the same constraints as private firms. In particular, the government must incur a cost k to post a vacancy. Supposing that the government operates G firms, then the number of matches in the economy as a whole is M = em (Q, A + G) , where A is the number of private firms that choose to post vacancies. Assume that the government pays the same wages as do private sector firms. Determine the effects of G on the unemployment rate, the vacancy rate, the labor force, the number of private firms, the total number of firms (private and government-run), aggregate output, and labor market tightness. Explain your results. (Here, G is an exogenous variable, and A is still an endogenous variable.)Economics CHOOSE THE CORRECT ANSWER. Remember that in the equilibrium prediction of an ultimatum game, the Proposer will offer the smallest non-zero amount of money possible. First-year Commerce students were asked to play an Ultimatum game where a choice had to be made over the division of R100. Offers could only be made in R10 increments, and the results of the various offers made are reported in the table below. Amount offered by Proposer RO R10 R20 R30 R40 R50 Proportion rejected 100% 60% 50% 30% 10% 0% What is the equilibrium split of the R100 between the Proposer and the Responder? O A. Proposer: R50, Responder: R50 O B. Proposer: R10, Responder: R90 O C. Proposer: R90, Responder: R10 O D. Proposer: R60, Responder: R40 O E. Proposer: R40, Responder: R60
- Which statement best exemplifies current motivation theories? The reinforcement approach to motivation has been found to be superior to other motivational models. The motivational models that make strong economic assumptions regarding human motivation have received the most universal acceptance. There are several approaches to motivation, and one or another may be useful in specific organizational contexts, with specific individuals or groups, at different times. Freud's psychodynamic theory of motivation has generally been supported with the strongest empirical evidence.What are the sources of Winner-Take-All Markets? A)Market aspect Production cloning (supply side): Whereby services are reproduced. Network economies (demand side): Whereby more consumers use it, making it the product or service norm. Lock-in Through Learning or investment: Technologies used early attract more investment. B)Human aspect Major decisions by those who hold leverage. Natual limits on the size of the agenda. Habit formation or acquired taste: Such as brand loyalties, and favored news anchors. Status goods and positional concerns. Special gifts and occasions. Avoidance of regret. Concentrated Purchasing Power. C)Answer A and B. D)Market aspect Neoliberal modes of governance directing the tastes to a market fundamental ideals. Desires set by resource extraction linked to the fossil fuel economy. Human aspect Status symbols set by social media. Popular ideals linked to the celebrity culture.Vertical integration involves deciding whether to "make or buy." Group of answer choices True False
- Utilitarianism characterizes the moral approach taken by Ford in the infamous Pinto case study.True FalseA new market appears that works according to the rules of the Stackelberg model. The costs of firms on this market as a function of individual supply q is C(q) = f + Cq^2, where both F > 0, C > 0. The demand is P(Q) = A - BQ as afunction of total supply Q, with A > 0, B > 0. What is the quantity of followers on the market assuming free entry (as a function of A B C and F) Assume entry costs Z, what is the new equilibrium quantity of firms?Describe a cost-benefit analysis. Explain the role of sunk costs in decision-making. Differentiate between micro- and macro-economics. Illustrate a generic demand and supply curve. Explain how consumer expectation is a determinant of demand.
- List five arguments often given to support traderestrictions. How do economists respond to thesearguments?The neoclassical tradition in economics has put a huge emphasis on the benefits of competition. Only the perfectly competitive market structure reliably produces both productive and allocative efficiency (measures of static efficiency). Any of the imperfectly competitive market structures are generally viewed as a fall from grace. All are described as statically inefficient, it is just a matter of degree. Typically, we bemoan the movement toward a monopoly, and often invoke antitrust law to prevent it. If you were given a choice would you be willing to live in a world of perfect competition? Put another way, are there reasons to prefer imperfect competition (Monopolistic Comp., Oligopoly, and Monopoly)? Can you think of anything that you currently consume/use that is a product of a large oligopolist...Do you think it would even be possible for a perfectly competitive industry to have created it? If you are struggling with this topic, then search the web for "dynamic…What is the key assumption in the difference-in-differences method? Two groups of people should have the same potential outcomes Two groups of people should have the same time trend in their potential outcomes Two groups of people should have the same potential outcomes before the policy is in place Two groups of people should have the same potential outcomes after the policy is in place