MANAGERIAL ECONOMICS
5th Edition
ISBN: 9781337106658
Author: FROEB
Publisher: CENGAGE L
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Chapter 22, Problem 22.6IP
To determine
The reasons why the existing problem will not recur.
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1. Based on the video, answer the following questions.
• What are the 5 key characteristics that differentiate perfect competition from monopoly? Based on the video.
• How does the number of sellers in a market influence the type of market structure? Based on the video.
• In what ways does product differentiation play a role in monopolistic competition? Based on the video.
• How do barriers to entry affect the level of competition in an oligopoly? Based on the video.
• Why might firms in an oligopolistic market engage in non-price competition rather than price wars? Based on the video.
Reference video:
https://youtu.be/Qrr-IGR1kvE?si=h4q2F1JFNoCI36TV
1. Answer the following questions based on the reference video below:
• What are the 5 key characteristics that differentiate perfect competition from monopoly?
• How does the number of sellers in a market influence the type of market structure?
• In what ways does product differentiation play a role in monopolistic competition?
• How do barriers to entry affect the level of competition in an oligopoly?
• Why might firms in an oligopolistic market engage in non-price competition rather than price wars? Discuss.
Reference video: https://youtu.be/Qrr-IGR1kvE?si=h4q2F1JFNoCI36TV
Explain the importance of differential calculus within economics and business analysis. Provide three refernces with your answer. They can be from websites or a journals.
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- Difference-in-Difference In the beginning of 2001, North Dakota legalized fireworks. Suppose you are interested in studying the effect of the legalizing of fireworks on the number of house fires in North Dakota. Unlike North Dakota, South Dakota did not legalize fireworks and continued to ban them. You decide to use a Difference-in-difference (DID) Model. The numbers of house fires in each state at the end of 2000 and 2001 are as follows: Number of house fires in Number of house fires in Year North Dakota 2000 2001 35 50 South Dakota 54 64 a. What is the change in the outcome for the treatment group between 2000 and 2001? Show your working for full credit. (10 points) b. Can we interpret the change in the outcome for the treatment group between 2000 and 2001 as the causal effect of legalizing fireworks on number of house fires? Explain your answer. (10 points)arrow_forwardC. Regression Discontinuity Birth weight is used as a common sign for a newborn's health. In the United States, if a baby has a birthweight below 1500 grams, the newborn is classified as having “very low birth weight". Suppose you want to study the effect of having very low birth weight on the number of hospital visits made before the baby's first birthday. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model: Number of hospital visits made before baby's first birthday 5 1400 1450 1500 1550 1600 Birthweight (in grams) a. What is the running variable? (5 points) b. What is the cutoff? (5 points) T What is the discontinuity in the graph and how do you interpret it? (10 points)arrow_forwardC. Regression Discontinuity Birth weight is used as a common sign for a newborn's health. In the United States, if a baby has a birthweight below 1500 grams, the newborn is classified as having “very low birth weight". Suppose you want to study the effect of having very low birth weight on the number of hospital visits made before the baby's first birthday. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model: Number of hospital visits made before baby's first birthday 5 1400 1450 1500 1550 1600 Birthweight (in grams) a. What is the running variable? (5 points) b. What is the cutoff? (5 points) T What is the discontinuity in the graph and how do you interpret it? (10 points)arrow_forward
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