If We Want to Use Markov Analysis to Study Market

question 45

Multiple Choice

If we want to use Markov analysis to study market shares for competitive businesses

• A)it is an inappropriate study.
• B)simply replace the probabilities with market shares.
• C)it can only accommodate one new business each period.
• D)only constant changes in the matrix of transition probabilities can be handled in the simple model.

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Definitions:

Tax Revenue

Income that is gained by governments through taxation, which is then used to fund public services and government obligations.

White Water Rafting

an adventurous outdoor activity which involves navigating rivers or waterways with varying degrees of rough water or rapids in a raft.

Unit Cost

The expenditure a business incurs in the production, storage, and distribution of an individual unit of a certain product or service.

Deadweight Loss

A loss of economic efficiency that occurs when the optimal quantity of a good is not produced.