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How would the price mechanism decide resource allocation in a competitive (free) market?The main issue it to explain how the price mechanism has a signalling, rationing and incentives function for the actors on a competitive market, creating equilibrium on the market and allocating resources in different markets.
How to calculate new profit earn by a firm in oligopoly if another firm cheat
When is tax to society cause a deadweight loss? Applying Consumer and Producer Surplus: The Efficiency Costs of a Tax A tax causes a deadweight loss to society, since les
Variable and Total cost curve * Consequently (from the table which is given): - MC initially decreases with increasing returns 0 through 4 units of output
Profit: This is surplus left over after a company sells its output and pays off cost of production (which includes raw materials, labour costs and a proportional share of its capit
a severe restriction occurs to the availability of consumer credit throughout the banking and finance system
Mikes' preferences for consumption and leisure may be represented by the Utility function: u(C, L) = ( C-200)*(L-80) . His marginal utilities of leisure and consumption are (C-200
what is pooling equilibrium
what is outputgap?
Causes of inflation: Excessive growth in wages relative to productivity can cause inflationary pressures. This causes aggregate demand to increase relative to aggregate supp
Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales
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