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Questions and Answers
In the kinked demand curve model of oligopoly, it is assumed that:
In the kinked demand curve model of oligopoly, it is assumed that:
The Cobb-Douglas homogeneous production function Q = $L^{1/2}K^{1/2}$ exhibits:
The Cobb-Douglas homogeneous production function Q = $L^{1/2}K^{1/2}$ exhibits:
Price discrimination will be profitable only if the elasticity of demand in different markets is:
Price discrimination will be profitable only if the elasticity of demand in different markets is:
An example of positive economic analysis would be:
An example of positive economic analysis would be:
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Business cycles emerge in which type of economic system?
Business cycles emerge in which type of economic system?
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Study Notes
Oligopoly Models
- In the kinked demand curve model of oligopoly, it is assumed that the demand curve has a kink at the current price level, with a more elastic segment above the kink and a less elastic segment below.
Production Function
- The Cobb-Douglas homogeneous production function is Q = $L^{1/2}K^{1/2}$, where Q is output, L is labor, and K is capital.
Price Discrimination
- Price discrimination will be profitable only if the elasticity of demand in different markets is different, allowing a firm to charge different prices in each market.
Economic Analysis
- An example of positive economic analysis would be a study that aims to describe and explain an economic phenomenon without making value judgments.
Economic Systems
- Business cycles emerge in capitalist economic systems, characterized by private ownership of the means of production and creation of goods and services for profit.
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Description
Test your knowledge of business economics with this mock test paper. Answer questions on topics like price discrimination and economic analysis.
