Test #2 Practice Test #2: Answer Key Exam number 2 will take place on Monday‚ April 8th‚ 2013. This‚ the second of two practice exams‚ will be the subject of class on Wednesday. It will not be graded‚ but will serve only as practice material accurately representing the content and format of the exam. 1.) Walter used to work as a high school teacher for $40‚000 per year but quit in order to start his own painting business. To invest in his painting business‚ he withdrew $20‚000 from his savings
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Pure Competition ANSWERS TO END-OF-CHAPTER QUESTIONS 21-1 Briefly state the basic characteristics of pure competition‚ pure monopoly‚ monopolistic competition‚ and oligopoly. Under which of these market classifications does each of the following most accurately fit? (a) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you or your family has an account; (e) the automobile industry. In each case justify your classification. Pure competition:
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elastic when generics entered the market post-patent expiration. The below graphs display this change in demand elasticity for Zoloft. We expect this will be the same for Viagra. PAST AND CURRENT STATE OF VIAGRA The current market for ED drugs includes three patented brand drugs: Viagra (Pfizer)‚ Levitra (Bayer) and Cialis (Eli Lilly). Viagra was introduced in March 1998 and held a pure monopoly
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ISSN 1045-6333 THE SHAREHOLDER WEALTH MAXIMIZATION NORM AND INDUSTRIAL ORGANIZATION Mark J. Roe Discussion Paper No. 339 11/2001 Harvard Law School Cambridge‚ MA 02138 The Center for Law‚ Economics‚ and Business is supported by a grant from the John M. Olin Foundation. This paper can be downloaded without charge from: The Harvard John M. Olin Discussion Paper Series: http://www.law.harvard.edu/programs/olin_center/ SHAREHOLDER WEALTH MAXIMIZATION JEL Class: D42‚ G32
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The four basic market structures in economics are perfect competition‚ monopoly‚ monopolistic competition and oligopoly. A market that is in the market of perfect competition‚ “is a market in which economic forces operate unimpeded” (Colander‚ 2004). A market that is considered a monopoly is “a market structure in which one firm makes up the entire market (Colander‚ 2004). A monopolistic competition is “a market structure in which
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Belgium become an independent country not before than 1830 and by law was a neutral country. Therefore‚ it could not participate in adventures along with the big powers such as Britain and France. Although the Belgian people were not enthusiastic‚ king Leopold was desperate to make an Empire out of Belgium; his philosophy was that no country is complete without overseas possessions‚ more precisely‚ colonies. He did not want Belgium to be left behind the other European countries who had colonies in
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EC229 Economics of Strategy Introduction 1. GlaxoSmithKline (GSK) is a global healthcare company specialized in the research‚ development‚ manufacturing and marketing of pharmaceutical and consumer health-related products. The company has operations in 120 countries‚ with products being sold in over 150 countries. (Description) 2. As a dominant player in the pharmaceutical industry‚ GSK operates in an oligopolistic market. It is highly cash generative‚ with increased sales growth and shareholder
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Prices and Markets Questions for Demonstration Lectures QUESTIONS IN RED MUST BE ATTEMPTED BY STUDENTS FIRST. STUDENTS HAVE FIVE (5) MINUTES TO ANSWER THE QUESTION ON THEIR OWN AND FIFTEEN (15) MINUTES TO DISCUSS THEIR ANSWERS IN A GROUP OF 2-4 INDIVIDUALS. Your tutors will be available throughout this period to help you answer any questions. The questions marked with **** will not de discussed in the tutorial and must be attempted by students on their own. If you have any questions please
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CHAPTER 2 The open door policy is a policy used by the china in the 19th century to repair the economy of their nation. Some of the scholars and academician classify this policy as one of the American’s foreign policy towards china to monopoly China’s economy. China in the 19th century was a country which was widely kwon as the wanted land of the imperialist. All the imperialist including Dutch‚ Germany‚ America as well as British. All of those imperialist feel insecure as they have their own
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and Carnegie Steel‚ became monopolies and owned all parts of one particular industry. These huge firms were able to mass produce their products and sell them not only all over the country‚ but also internationally. Due to the huge transformation in the business world‚ the economy and politics were affected as well as the American people and unfortunately‚ these affects turned out to be more negative than positive. As businesses began to form and grow into huge monopolies‚ the impact they had on the
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