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A barrier to entry is an obstacle that prevents a new entrant from joining a market. They exist within both oligopolistic and monopolistic market structures. Barriers to entry matter b...
Government spending is a component of Aggeregate Demand along with Consumption, Investment and Net exports. A reduction in Aggeregate Demand causes firms to produce less output in order...
In theory, a monopoly is a situation in which the ‘industry is the firm’ however in reality in the UK we consider anything which controls 25% or more of the market to have monopoly pow...
Income can be defined as a flow of factor incomes, such as earnings, dividends and rent. Alternatively, wealth is a stock of financial and real assets including savin...
Monetarists believe that prices and money wages are flexible and can adjust quickly, meaning that the real wage is at the right level to achieve long run equilibrium in the labour market. All unemployment...
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