The Perfectly Competitive Model Makes a Lot of Fairly Unrealistic

question 38

Multiple Choice

The perfectly competitive model makes a lot of fairly unrealistic assumptions.Why do economics textbooks still talk a lot about this model?

• A) Many markets are close to being perfectly competitive.
• B) It is an important model to use as a benchmark to compare other markets structures to.
• C) Perfectly competitive markets maximize societal welfare.
• D) All of the above.

Recognize scenarios where hypergeometric distribution is applicable through practical examples.

Understand and apply Poisson distribution and its properties.

Identify the conditions under which Poisson distribution provides a good approximation to binomial probabilities.

Compute probabilities and statistical measures (mean, variance, standard deviation) of Poisson distribution given specific parameters.

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Definitions:

Nephron

The basic structural and functional unit of the kidney, responsible for filtering blood and producing urine.

Ascending Loop

A section of the nephron in the kidney where salt and water are reabsorbed into the blood, crucial for urine concentration.

Distal Convoluted Tubule

A portion of the kidney nephron that functions in the reabsorption of water, sodium, and chloride and in the regulation of potassium and acid-base balance.

Proximal Convoluted Tubule

A part of the nephron in the kidney where the filtration of blood takes place, responsible for the reabsorption of water, ions, and nutrients.