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If Your Economics Professor Grades on a Curve and All

question 35

Essay

If your economics professor grades on a curve and all students agree to get together (i.e., collude) and not study, overall effort is reduced and the grade distribution remains relatively unchanged. Explain whether this is a realistic outcome. Does your answer differ depending on whether the class is large or small? Relate your answer to the problems of collusion in cartels discussed in the chapter on oligopolies.


Definitions:

Sales

The total amount of a company's revenues generated from goods or services provided to customers.

Divisional Operating Income

The profit generated from a specific division of a company, excluding expenses and incomes not directly related to the division's operations.

Proportional Allocation

A method of distributing costs or revenues among different departments, products, or activities in proportion to some base measure such as hours worked or units produced.

Operating Income

Earnings generated from a company's everyday business operations, reflecting its efficiency in managing its core functions.

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