quanda14 - Chapter 14 1. a. Are the following markets...

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Practice Questions to accompany Mankiw & Taylor: Economics 1 Chapter 14 1. Are the following markets likely to be perfectly competitive? Explain. a. The market for petrol Answer: Yes, many buyers and sellers and the product of different sellers is nearly identical. b. The market for blue jeans Answer: Probably not; many buyers and sellers but the product is not identical because of the importance of branding (eg Levi’s) so each seller is not a price taker. c. The market for agricultural products such as wheat and milk Answer: Yes, many buyers and sellers and the product of different sellers is identical. d. The market for the shares of IBM Answer: Yes, many buyers and sellers and the product of different sellers is identical. e. The market for electricity Answer: No, few sellers (often only one). If there were multiple sellers, the product would be identical. f. The market for cable television Answer: No, few sellers (often only one). If there were multiple sellers, the product would be nearly identical. 2. a. The following table contains information about the revenues and costs for Barry's Golf Ball Manufacturing. All data are per hour. Complete the
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This note was uploaded on 07/06/2009 for the course BUS BAM303 taught by Professor Na during the Spring '09 term at 東京大学.

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quanda14 - Chapter 14 1. a. Are the following markets...

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