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Monopolies generate economic profit and are therefore better able to invest in research & development which may improve their productive effiency, making them more dynamically efficient over time. 

In the dynamics of a certain market, it would be externalities as a consequence of the normal operation of buying and selling of this market. An externality happens when a third-party (not involved in the...

(Barr and Britvic are two of the three largest soft drink firms in the UK.)

A economies of scale

B an increase in consumer surplus

A reduction in the interest rate will increase the incentive for consumers to spend money. This increases consumption which increases aggregate demand.

An increase in the interest rate wi...

Initially the curve is perfectly elastic. This means without raising the price level, output can increase. Output then becomes increasisngly less responsive to changes in the price level until the curv...