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Protectionism is a government philosophy towards foreign trade. According to this philosophy, governments should use tariffs and quotas to protect domestic firms from foreign competiti...

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...

Water is produced and sold by the government. Demand for water is represented by the linear function Q=50-2P. The total cost function for water production is also a linear function: TC(Q) = 100 + 10Q. ...

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...