ECON 2106 chapter 12 Answers-Amelia Rousseau.pdf - chapter...

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11/15/2017chapter 12-Amelia Rousseau1/381.2.Is the following statement correct or incorrect? "According to the model of perfectly competitive markets, the demand for wheat should be a horizontal line. But this can't be true: When the price of wheat rises, the quantity of wheat demanded falls, and when the price of wheat falls, 13.student in the class was given large amounts of information about a particular firm and asked to determine a pricing strategy for the firm. Most of the students spent hours preparing their answers and came to class carrying many sheets of paper with their calculations. When his professor called on him in class for an answer, Tobias stated, "The case said the XYZ Company was in a very competitive industry . . . and the case said that the company had all the business it could handle." Source: Andrew Tobias, The Only Investment Guide You'll Ever Need, San Diego: Harcourt, 2005, pp. 6-8.Given this information, what price do you think Tobias argued the company should charge? (Tobias says the class greeted his answer with "thunderous applause.")Student: Amelia Rousseau Date: 11/15/17Instructor: xi mao Course: Econ2106 Fall2017Assignment: chapter 12The late Nobel Prize-winning economist George Stigler once wrote, "the most common and most important criticism of perfect competition... [is] that it is unrealistic."Source: George Stigler, "Perfect Competition, Historically Contemplated," Journal of Political Economy, Vol. 55, No. 1, (February 1957), pp. 1-17.Despite the fact that few firms sell identical products in markets where there are no barriers to entry, economists believe that the model of perfect competition is important becauseA.this is the type of market that our business laws protect and promote.B.it is a benchmarka market with the maximum possible competitionthat economists use to evaluate actual markets that are not perfectly competitive.C.all markets eventually become perfectly competitive.D.economists prefer studying theoretical markets instead of actual markets.
1: DefinitionA market that meets the conditions of (1) many buyers and sellers, (2) all firms selling [Related to Don't Let This Happen to You]Is the following statement correct or incorrect? "According to the model of perfectly competitive markets, the demand for wheat should be a horizontal line. But this can't be true: When the price of wheat rises, the quantity of wheat demanded falls, and when the price of wheat falls, 1
Perfectly competitive market A market that meets the conditions of (1) many buyers and sellers, (2) all firms selling
The financial writer Andrew Tobias has described an incident when he was a student at Harvard Business School: Each student in the class was given large amounts of information about a particular firm and asked to determine a pricing strategy for the firm. Most of the students spent hours preparing their answers and came to class carrying many sheets of paper with their calculations. When his professor called on him in class for an answer, Tobias stated, "The case said the XYZ Company was in a very competitive industry . . . and the case said that the company had all the business it could handle." Source: Andrew Tobias, The Only Investment Guide You'll Ever Need, San Diego: Harcourt, 2005, pp. 6-8.Given this information, what price do you think Tobias argued the company should charge? (Tobias says the class greeted his answer with "thunderous applause.")
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