is at max point Managers take production right up to the point where TC=TR; if they can [2] Oligopolies can benefit most from going past the profit maximising output because it gives them a market share advantage over their competition. The economic climate can affect managers’ ability to deploy this tactic. If a recession is on the cards then shareholders will be anxious and keeping them and profits high will be a priority to which managers must abide to keep their position. The Downsides:
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- Financial flows Deregulation of financial markets (less rules and regulations in currency markets and foreign investment) led to a rapid increase in FDI and portfolio investment. Investment makes economies more integrated as economic changes in one country influence others (CONTAGION e.g. negative effects such as the GFC and the EDC or positive effects such as new technology and booming economies). The main benefits are that it enables countries to finance their domestic economy even if domestic
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1. Define difference and inequality Difference as per the dictionary definition would convey the points of dissimilarity for example the observational differences between men and women‚ however difference in the social sciences and humanistic context‚ difference contrasts‚ social groupings such as the different nationalities‚ ‘gender‚ class‚ age or sexuality’1However difference is not limited to these alone it may take the form of the attitudes and preferences held by individuals. Distinction
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successful focus strategy. In addition‚ Porter argues that “competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm’s cost of creating it.” • Peteraf defines competitive advantage as “sustained above normal returns.” She defines imperfectly mobile resources as those that are specialized to the firm and notes that such resources “can be a source of competitive advantage” because “any Ricardian or monopoly rents generated by the asset will
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In the world‚ there are many definitions and variations to words‚ but the world falls short when attempting to define the word poverty. People in the world‚ claim to easily define poverty with definitions like anyone who cannot afford basic resources or if one is homeless they suffer from poverty‚ but little do they know that they are greatly mistaken. Poverty owns a median‚ a median that only a select few fall under‚ which is truly unfair. There is a median that poverty carries along‚ drawing out
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Economics 201A: Economic Theory (first half ) Tu-Th 12:30–2:00 150 GSPP 1 Description Economics 201A is the first semester of the required microeconomic theory sequence for first-year Ph.D. students in the economics department. The first half of the fall semester focuses on choice theory‚ consumer theory‚ and social choice. The second half will be taught by Chris Shannon and will cover general equilibrium. (A separate syllabus will be distributed for the second half.) In the spring‚ the
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- 3 - N05/3/ECONO/HP1/ENG/TZ0/XX/M Paper Specific Markscheme In addition to the assessment criteria use the paper-specific markscheme below. Award up to the maximum marks as indicated. Examiners should be aware that candidates may take a different approach‚ which if appropriate should be fully rewarded. 1. (a) Explain the differences between monopolistic competition and oligopoly as market structures. [10 marks] • large number of firms (m.c) versus a few dominant firms (oligopoly) • differentiated
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John Hicks "An economy consists of nothing else but an enormous cooperation of workers or manufacturer to make things and do things which clients want." The Vital Functions of an Economy:- Production‚ consumption and growth are vital factors of economics. Economies might differ in the organization but all perform these three functions which are discussed below. 1. Productions:- The First vital process of an economy is manufacture which must go on incessantly. "Production comprises any action‚ and
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BEC 1034 MICROECONOMICS TUTORIAL 1 (Chapter 1: Ten Principles of Economics) 1. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies‚ wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. 2. "There is no such thing as a free lunch‚" is used to illustrate the principle that a. goods are scarce. b. people face
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ECO 252 -- HW 9 Questions 1. Which of the following events would cause a decrease in the equilibrium interest rate in the short-run money market? For each event‚ simply state YES or NO. a. The price level increases‚ Ceteris Paribus. b. The FOMC conducts open market sales of existing bonds‚ Ceteris Paribus. c. The aggregate demand shifts to the left‚ Ceteris Paribus. d.The Fed increases the required reserve ratio‚ Ceteris Paribus. e. The Fed increases the money supply‚ Ceteris
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