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Drastic reduction in the cost of production

Assignment Help Macroeconomics
Reference no: EM131159800

1. Briefly explain how firms compete/set price under -

  • Perfect competition
  • Oligopoly

2. Most recently, the price of oil has fallen drastically. Explain if this is a result of:

  • A drastic reduction in the cost of production (i.e. shift in the supply curve)?
  • A fall in the demand for oil and oil products ( i.e. shift in the demand curve?
  • A change in the Speculative Activity ( i.e. change in  stock piling)?
  • Other factors ?

( Based on current oil pricing in the global market)

Reference no: EM131159800

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