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Homogeneous goods, Firms are price takers, An infinite number of suppliers and producers, Firms are profit maximisers, There are no barriers to entry, Producers have perfect information

many buyers and sellershomogenous goodsno barriers to entry and exitperfect knowledge No sunk costsunrealisticno place for monopolies/oligopolies

One type of regulation that could be used to correct financial market failure would be to impose a cash or liquidity ratio for commercial banks, to solve the issue of excessive and risky bank lending. A c...

A PPF is a graph that can be used to explain opportunity cost, and trade off. It is made up of a concave line with, for example, apples on the vertical axis and bananas on the horizontal ...

As an oligopoly is when a group of firms have the majority of the market share, they gain price-setting power. One policy they can use is limit-pricing. In lowering the price of their goods, oligopolies a...