PART A: Answer any 5 of the questions A.1 – A.7. Do not answer additional questions. This part is worth 15% of the exam.
Briefly define and give a specific example of:
A.1. Perfect competition
A.3. Monopolistic competition
A.4. NAICS Code
A.5. Location Quotients
A.6. An inverse matrix
A.7. Price discrimination
PART B: Answer each of the questions B.1 – B.3. This part is worth 30% of the exam.
B.1. Why is “1” a critical value in terms of Location Quotients? If the Location Quotient of some industry is greater than one, what does this mean for the area whose Location Quotient this is?
B.2. Why do all suppliers want to price discriminate?
B.3. Why don’t all suppliers price discriminate?
PART C: Answer only 1 of the questions C.1 – C.2. Do not answer additional questions. This part is worth 55% of the exam.
C.1. Outline the structure of an input-output model (including assumptions about supply and demand). What is an inverse matrix? Why is inverting a matrix significant in terms of input-output analysis?
C.2. Describe a Linear Programming (LP) Problem. Specifically, describe (you can use an example):
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