Based on the Aghion and Bolton models assupmtions the expected price charged for the consumer is:Select one:a.100.b.25.c.50.d.12,5.e.75.
Question
Based on the Aghion and Bolton models assumptions the expected price charged for the consumer is:
Select one:
- a. 100.
- b. 25.
- c. 50.
- d. 12.5.
- e. 75.
Solution
To choose the correct answer based on the assumptions of the Aghion and Bolton models, we need to analyze the situation.
Step 1: Break Down the Problem
- Identify the context of the Aghion and Bolton models, which typically deals with market dynamics in competitive scenarios.
- Determine how to use their assumptions to derive the expected price charged to consumers.
Step 2: Relevant Concepts
- Aghion and Bolton models discuss how firms set prices based on their costs, consumer demand, and market competition.
- We will assume that there’s some equilibrium price determination in a competitive market.
Step 3: Analysis and Detail
- It's important to note that without specific parameters (like marginal cost or demand curves) provided in the question, we cannot calculate an exact price.
- However, based on typical scenarios where firms charge an expected price in a competitive equilibrium, we can analyze the options presented:
- 100
- 25
- 50
- 12.5
- 75
Step 4: Verify and Summarize
- In many models, the expected price is often set around the mid-point of potential values, thus looking for a sensible average or central tendency among the options.
Given these possibilities and general principles in economic models, one might expect the price to be reasonable and attainable.
Final Answer
I select option c. 50 as a reasonable expected price charged for the consumer based on common practices in economic models.
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