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DISTRIBUTED CORPORATE PROFITS: More commonly termed dividends, this is the portion of a corporation's after-tax accounting profit that's paid to shareholders or owners. Corporate managers usually try to pay the shareholders some minimum dividend that's comparable to returns from other financial markets--such as the interest on government securities or corporate bonds--to keep the owners from selling off the company's stock. That portion of after-tax accounting profit that's not paid out as dividends is typically invested in capital.
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Lesson 20: Oligopoly | Unit 4: Analysis
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Page: 16 of 24
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Topic:
Kinked-Demand Curve Analysis
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- The kinked-demand curve (D) and corresponding marginal revenue curve (MR) are presented in this graph:
- Note that the marginal cost curve (MC) intersects the marginal revenue curve in the vertical segment.
- This intersection is implied by the basic construction of the kinked-demand curve.
- For small changes in production, up or down, the oligopolistic firm maintains existing production and price.
- This is the source of price rigidity for oligopoly.
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MACROECONOMIC MARKETS Three sets of markets that make up the macroeconomy--product, financial, and resource--which exchange the three primary types of macroeconomic commodities--gross production, legal claims, and factor services. The four macroeconomic sectors--household, business, government, and foreign--interact through these three sets of markets. The primary objective of macroeconomic theories is to explain activity that takes place in these three sets of markets.
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time browsing through a long list of dot com websites trying to buy either arch supports for your shoes or an AC adapter that works with your MPG player. Be on the lookout for strangers with large satchels of used undergarments.
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It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
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"Never let the fear of striking out get in your way. " -- Babe Ruth
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RGDP
Real Gross Domestic Product
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