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First, is important to note that a firm that has a monopoly has the ability to set its own price since there is no other competitors in the market. In addition, in economics, we typically assume that all ...

Opportunity cost is the cost of sacrificing the next best alternative to the activity under consideration. In order to explain this I will use a literal example. You are going to watch a football match. T...

Generally a firm should shutdown if it's revenue is less than it's total cost. However in the short run since fixed costs (e.g. rent) have already been paid the firm only considers it's variable costs (e....

Expansionary monetary policy is the use of a central bank's money supply and interest rate manipulation to stimulate aggregate demand and aggregate supply. This is done through raising the money supply, l...

Interest Rates are a tool used by the Bank of England in the UK in order to control inflation and keep it to the 2% aim. Interest rates work in two main ways, supposing the interest rates rose from 0.25% ...