The Theory of the Median Voter May Not Work If

question 13

Multiple Choice

The theory of the median voter may not work if:
I. voters do not vote.
II. voters do not vote for the policy closest to their own positions.
III. there is only a single dimension over which the voting occurs.

• A) I only
• B) II only
• C) I and II only
• D) I, II, and III

Analyze the elasticity of demand in relation to pricing strategies and firm competition.

Understand the difference in pricing and output decisions between monopolistic and competitive firms.

Recognize economic inefficiencies associated with monopolies, including allocative and productive inefficiencies.

Identify the consequences of monopoly power on consumer welfare and market efficiency.

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Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cash Flow

The overall movement of capital entering and leaving a firm, which directly affects its solvency.

IRR

The Internal Rate of Return is a financial measure utilized in the evaluation of capital investments to determine their expected profitability.

Cash Flow

The overall volume of financial resources circulated within and out of an enterprise, affecting its solvency.