Competition is essential to achieve efficiency in any market. In an imperfectly competitive market structure‚ however‚ efficiency is lost. The Economist’s article “Let Mexico’s Moguls Battle”‚ describes the lack of competition in the fixed and mobile phone markets in Mexico‚ shows its effects on consumers‚ and outlines the measures taken to promote competition. Figure 1 Figure 1 Telmex and Telcel abuse the lack of competition in the Mexican fixed and mobile phone markets respectively. These “two
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Economics 370 Microeconomic Theory Problem Set 6 Answer Key 1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p‚ which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual‚ the monopoly determines its optimal output on the basis of MR = MC. Here‚ however‚ it cannot charge a price in excess of p*. So
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30.11.2012 Key learnings from Micro Economics module It was a very informative session and an eye opener. I was under the impression that economics only deals with fiscal and monetary policies. This was my first acquaintance with micro economics and it opened up a new perspective. I am in a position now to understand many events that happen every day around me. I am able to have a broad idea about how these events may have a direct or indirect impact on me as an individual (professionally as well
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Question 1) With examples give 5 reasons why the study of microeconomics is important. Microeconomics is a field of economic study that focuses on how an individual ’s behaviour and decisions affect the supply and demand for goods and services. For the purpose of microeconomics‚ the actions of individuals‚ households and businesses are crucial‚ unlike the study of macroeconomics‚ which focuses on national and international economic trends. Despite the differences between the two fields‚ however
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whether each of the following statements applies to microeconomics or macroeconomics‚ and why: 12 Marks Total a. The unemployment rate in Canada was 7.0 percent in January 2010 Answer: This is the macroeconomic statement because it describes the unemployment rate of the whole country. b. A Canadian software firm discharged 15 workers last month and transferred the work to India. Answer: This is the microeconomic statement because it focuses in an individual Canadian
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IB/AP Economics Unit 1 Introduction to Economics Introduction to Economics AP and IB Economics Unit 1 Definitions of social science and economics Definitions of microeconomics and macroeconomics Definitions of growth‚ development and sustainable development Positive and normative concepts Ceteris paribus Scarcity • factors of production: land‚ labor‚ capital and management/entrepreneurship • payments to factors of production: rent‚ wages‚ interest‚ profit Choice Utility: basic definition Opportunity
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retail bank overcomes the limitations of thirty-year-old "legacy" microeconomics systems to launch a high-tech operation that offers its customers a complete range of banking services over the telephone. Another bank is able to roll out‚ within three months of an acquisition‚ information systems that deliver the same level of service to all customers at all branches‚ new and old. (Richard 2002‚ 177) For these companies‚ Microeconomics has genuinely become an enabler of change that boosts competitive
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Oil rises above $103 ahead of Iran nuclear talks Published: Thursday‚ 12 Apr 2012 | 5:43 AM ET SINGAPORE - Oil prices rose above $103 a barrel Thursday in Asia as traders looked to negotiations this weekend over Iran’s nuclear program. Benchmark oil for May delivery was up 42 cents to $103.12 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.68 to settle at $102.70 in New York on Wednesday. Brent crude for May delivery
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Section A a. Explain the concept of dominant strategy equilibrium. 1. http://tuvalu.santafe.edu/~jkchoi/game4.pdf 2. http://econweb.umd.edu/~borowitz/dominant_strategy_equilibrium.pdf b. Discuss the concept of Nash equilibrium. 1.http://www.economics.utoronto.ca/osborne/igt/nash.pdf 2. http://www.columbia.edu/~rs328/NashEquilibrium.pdf c. Is every dominant strategy equilibrium a Nash equilibrium? 1. http://economics.fundamentalfinance.com/game-theory/nash-equilibrium
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Chapter -1 1. The study of microeconomics includes the study of - Output and employment growth as markets expand in reaction to a rising price level in the economy. - Business investment and government spending in the marketplace. - The number of new jobs and income created as the economy grows. - How firms‚ workers‚ consumers‚ and investors interact and make decisions in the marketplace. Microeconomics is the study of the behavior of individual economic units: consumers‚ firms‚ workers
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