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100 schools are given exactly one million dollars each in grant money. They can spend the money on any or all of three programs: math tutoring (math), kickball lessons (kickball), or computer literacy (computer). All the money must be spent on a combination of the three programs at every school. The grant money is intended to better SAT scores.
a) Why would it not make sense to estimate the following model? Describe.
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What limitations are inherent in the economist’s view of pricing?
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Is a “perfectly competitive market” an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient
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