systematic risk and specific risk. Systematic risk is the risk of holding the market portfolio. When the market moves, each individual asset is more or less affected. To the extent that any asset participates in such general market moves, that asset entails systematic risk. Specific risk is the risk which is unique for an individual asset. It represents the component of an asset's return which is not correlated with general market moves. According to CAPM, the marketplace compensates investors for
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ECO 550 Assignment #3 Game Theory and Monopolies by ECO 550 Assignment #3 1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn’t matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt. Driver 2 Left Right Driver 1 Left 0,0 -1000 -1000
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ECONOMICS 2 REVISION MODULE 1: MARKETS IN ACTION MARKET EFFICIENCY * Market is efficient when social surplus (CS & PS) is maximised * Raising Production MC > MB: costs society more to produce than its value to us * Reducing Production MC < MB: society surplus not maximised * Efficient (Optimal) Allocation MC = MB: social surplus is at max PRICE ELASTICITY * Elastic: greater than 1 * Perfectly elastic: equal to infinity (horizontal line) * Inelastic:
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OUTLINE | I. Describe and identify monopolistic competition. A. Large Number of Firms 1. Small Market Share 2. No Market Dominance 3. Collusion Impossible B. Product Differentiation C. Competing on Quality, Price, and Marketing 1. Quality 2. Price 3. Marketing D. Entry and Exit E. Identifying Monopolistic
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and desist due to IP infringement. What category of IP has ParaWorld most likely infringed? Explain the actions that constitute such an infringement. (5 Marks) 2. What are some of the anti-competitive behaviours SesamWare might be guilty of? How did/might SesamWare’s behavior adversely affect free market competition upon which international trade depends? ( 5 Marks) 3. Is there an international law governing Sesame’s behaviour? How will competition laws be enforced globally? (5 Marks)
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Q1. In a perfectly competitive market it is assumed that all other things remain equal. In this perfectly competitive market there will be a single price at which the demand of milk from the consumer and the supply of milk to the market are balanced. It is at this price that the exact quantity of milk supplied will be consumed. This being the market equilibrium price of milk. The market equilibrium price of milk is shown graphically in figure 1.1 'the intersection of the down
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ECO 100 – Principles of Economics COURSE DESCRIPTION Presents a survey of basic macro- and microeconomic principles and concepts. Reviews the economic dynamics of market forces affecting competition, different economic systems, the role of government in the economy, and economic aspects of international trade. Discusses the labor market, interest rates and the supply of money, and performance of a national economy. Examines the use of economics in business decisions, considering such principles as
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the 4 elements of the economic way of thinking. I will be discussing supply and demand and how it affects prescription drugs and also how it is an important. I will be discussing increasing-cost industries as well as reviewing a perfectively competitive market. Impact of Economics An economics perspective of alcohol abuse would be that, even with significant harm is caused; they feel it should not be restricted. Economics assume that people, usually, are the best judges of themselves.
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Name : Casie Angela Thanos SIN : Subject : Microeconomics 1. Competitive market is a market in which there are many buyer and sellers so that each has a negligible impact on the market price. Perfectly competitive market: monopoly, oligopoly, monopolistic 2. Many things determine the quantity demanded at only goods but there’s one determinant plays a central role the price of the goods 3. – Substitution effect: when the price at a commodity falls, it becomes relatively cheaper
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the wholesale fruit market in Sydney. Olive could expect to sell any quantity of oranges that she delivered to the market at the going wholesale price. Olive thinks that earning a living from the orchard may be tough but she’s not afraid of a bit of hard work. 7. From the description above, what characteristics of the perfectly competitive firm does Olive’s orchard satisfy? Tick the appropriate boxes in the table below. Table 2 Characteristic of Perfectly Competitive Firm Olive’s Orchard
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