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The Evening News Reports That the S&P/TSX Index Dropped 0

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Short Answer

The evening news reports that the S&P/TSX Index dropped 0.9% on the day to close at 13,123 points. How many points did the index fall?


Definitions:

Profit Maximizing

The process of finding the level of output where a firm achieves the maximum possible profit.

Kinked Demand Curve Model

Oligopoly model in which each firm faces a demand curve kinked at the currently prevailing price: at higher prices demand is very elastic, whereas at lower prices it is inelastic.

Rivals' Price

The cost set by competing businesses for similar products or services in the market.

Marginal Cost

The additional cost associated with producing one more unit of output.

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