Supply, Demand and Governmental Policies.
Question 3: Which mechanism allocate resources when the price of a good is not
allowed to bring supply and demand into equilibrium?
Answer: When the price of a good is not allowed to
Firms in Competitive Markets.
Question 01: What is meant by competitive firm?
Answer: A competitive firm is a firm in a market in which: (1) there are many buyers and many
sellers in the market; (2) the goods offered by the
The monopoly describes a market by comprising a single firm. In the absence of regulation,
monopolists can exercise control over the prices they charge for products and services.
The four characteristics of monopolistic competition are: (1) large number of small firms, (2)
similar, but not identical products, (3) relatively good, but
Consumers, Producers and The Efficiency of
Question 01: Why lower prices raise consumer surplus?
Answer: Consumer Surplus is defined as the difference between the maximum amounts or
price a consumer is willing to pay
Question 01: Give an example of negative externality and an example of positive
Answer: Negative externalities occur when production and/or consumption impose external
costs on third parties outsi