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Describe and explain the main differences between Perfect Competition and Monopoly market structure.

Perfect Competition and Monopoly are opposite extremes of market structure. The main starting point for the differences between the two market structures is the ease of entrance and exit to and from the m...

Answered by Laurie G. • Economics tutor

5811 Views

Explain how a firm's costs of production are affected by the law of diminishing marginal returns in the short run (10)

The law of diminishing marginal returns is when a firm experiences a fall in returns as more units are produced in the short term.
In the short run at at least one factor is fixed, such as lan...

Answered by George B. • Economics tutor

9046 Views

Consider Donald Trump chooses to raise import tariffs on Chinese Goods, what will be the impact on the US macroeconomic environment?

Firstly, it would be useful to look at some key definitions. An import tariff is a fee paid to bring goods from abroad into a country and be sold. Therefore, a rise in Chinese import tariffs raises the pr...

Answered by Hugh W. • Economics tutor

1693 Views

Define the term PPF and illustrate it.

A PPF (Production Possibility Frontier) is a curve showing the maximum combinations of two goods and services produced over a period of time, with all available resources used at maximum efficiency.

Answered by Lochan G. • Economics tutor

1513 Views

Consider a competitive market, that has recently had an ad valorem sales tax imposed. Show this on a diagram. What is the impact on the market equilibrium? If the demand curve becomes more inelastic, which side of the market suffers more?

An ad valorem sales tax is a percentage tax on the market price of good, normally paid for by the seller. This tax will pull the supply curve up towards the top left corner of a supply and demand curve, w...

Answered by Joseph B. • Economics tutor

2161 Views