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Economics

How do you calculate the net social welfare loss due to a negative externality in production?

If there exists a negative externality in the production of a good or service (eg. coal power station emitting greenhouse gases) the Marginal Social Cost (MSC) to society of producing the good will exceed...

Answered by Scott N. • Economics tutor

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What are the factors affecting Cross-Price Elasticity?

First, it is important to understand the difference between own price elasticity and cross-price elasticity.Own price elasticity concerns about the responsiveness of the the quantity

Answered by Helen C. • Economics tutor

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Define the term monopoly and outline its characteristics.

Monopoly is a market structure where a single firm controls market's output and market share.
Monopoly's characteristics are the following:There is only one firm in the industry Changes in the firm'...

Answered by Iosif D. • Economics tutor

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What is the effect of the imposition of a tax on high-sugar drinks in the UK?

British market for high - sugar soft drinks represents a market failure. The drinks are a demerit good and are over - consumed (Figure 1 to draw: the graph showing supply and demand curves denoted as S an...

Answered by Sara K. • Economics tutor

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When will a perfectly competitive firm shut down?

To answer to this question, it is crucial that the students understand the difference between variable and fixed costs.Variable costs relate directly to the level of production and are dependent on it. Wh...

Answered by Ilias D. • Economics tutor

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