Assume That All Firms in This Industry Have Identical Cost

question 113

Multiple Choice

Assume that all firms in this industry have identical cost functions.
When price is $15 in this industry,

• A)the industry is in its long run equilibrium.
• B)it is because supply has shifted from Supply B to Supply A because firms that were not making a profit left the industry.
• C)new firms will be expected to enter.
• D)all firms are making zero economic profits.

Identify the assumptions not applicable to the M/M/1 model.

Calculate the average number of entities in the system under various waiting line models.

Compute service factors and utilization factors in finite and infinite population models.

Understand the impact of the service rate and arrival rate on system utilization and queue lengths.

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Definitions:

Treasury Bonds

Long-term government securities issued by the U.S. Treasury with a maturity period typically between 20 to 30 years.

Interest Rate Futures

Financial derivatives that allow investors to bet on or hedge against future changes in interest rates.

Sell

The action of offloading an investment from one's portfolio, typically with the goal of realizing gains or limiting losses.

Year-End

The end of a fiscal or calendar year, often used to reference the closing of financial accounts.