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Mizzou Econ 3251 Exam With Complete Solutions Latest Update
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Mizzou Econ 3251 Exam With Complete Solutions Latest Update...
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Mizzou Econ 3251 Exam With CompleteSolutions Latest Update
The primary participants in a market are
firms who supply the product and consumers who buy it, but government policies such
as taxes also play an important role in the operation of markets.
Economic theory is
the development and use of a model o test hypotheses
Example of a positive statement
If you consume this good, you will get sick
Most private sector firms want to maximize
profit
When interacting with a smaller number of rival firms, a manager uses a
strategy
Economists make many assumptions to simplify there models because
the real world is too complex to analyze fully
normative statement
concerns what somebody believes should happen
positive statement
, concerns what will happen
A cartel is a group of firms that attempts to
maximize joint profit
Each member of a cartel
agrees to produce output lower than it would if it were acting independently.
When the market demand curve is relatively inelastic
the higher the price the cartel sets, the greater the benefits to the cartel
If the price of automobiles were to increase substantially, the demand curve for gasoline
would most likely
shift leftward
Technological innovation in the production of computers has led to
a rightward shift of the supply curve for computers
Once an equilibrium is achieved, it can persist indefinitely because
in the absence of supply/demand shocks no one applies pressure to change the price
Government prohibition of advertising cigarettes on television would most likely result in
a leftward shift in the demand curve for cigarettes
producer groups tend to lobby for
price floors
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