The Definition of an Exogenous Variable Is

question 21

Multiple Choice

The definition of an exogenous variable is:

• A)a variable whose value is determined within the model under study.
• B)a variable whose value is determined outside the model under study.
• C)a variable whose value is determined through constrained optimization.
• D)a variable whose value is determined through comparative statics.

---

Definitions:

Joint Profits

The combined profits earned by two or more firms when they cooperate on a project or merge their operations.

Tacit Price Agreement

An unspoken understanding among competitors to set prices at a certain level without explicit communication.

Kinked Demand Curve

A demand curve in oligopoly market structures, characterized by a distinct bend or kink, indicating different elasticity above and below the current price.

Buying Power

The ability of consumers or businesses to purchase goods and services, influenced by income levels and the price of goods and services.