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Ch 5 PP - ClassNet
Ch 5 PP - ClassNet

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... Suppose: P = Ps0 + a x Qs :: P = Pd0 - b x Qd Ps0 = 10 :: a = 7 :: Pd0 = 100 :: b = 2 What is the market equilibrium price going to be? A. 55 B. 30 C. 74.29 D. 35.71 E. None of the Above You take the slope-weighted average of the two zero quantity prices, 10 and 100. • That means you are 2/9 of the ...
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... models of firm heterogeneity developed in the recent trade and macro literatures and for understanding the relationship between microeconomic firm performance and macroeconomic outcomes. Given these extreme differences in firm performance, the largest firms appear unlikely to be of measure zero rela ...
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Perfect competition

In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures.
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