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Should the government stop firms from getting too big?

First, define some termsMonopoly: when there is only one firm in the entire marketPerfect Competition: when there are many buyers and sellers in the marketThen, answer the question by describing the pros ...

Answered by Jason H. • Economics tutor

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8 What is likely to happen when the rate of interest increases? A) consumer spending increases B) firms buy fewer machines C) people hold more cash D) savers earn lower rewards

Answer:B)not A) because: higher interest = more expensive to borrow thus they hold less money and have less to spendnot C) because higher interest = more expensive to borrow thus they do not hold more cas...

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A football club raises all stadium seat prices by 5%. The demand for seats falls by 1% in zone W, by 3% in zone X, by 5% in zone Y and by 6% in zone Z. In which zone is the responsiveness of demand for seats to the price change elastic?

zone Z

Answered by • Economics tutor

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Explain how exchange rates are determined in a floating exchange market

In a FOREX market the exchange rate for a currency is determined by demand and supply provided it is a floating exchange rate. A floating exchange rate means that the rate will change with supply and dema...

Answered by Jerin G. • Economics tutor

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To what extent do consumers benefit from price discrimination by a firm with monopoly power? (8 Marks)

Price discrimination occurs when a firm, with monopoly power, charges different prices to different people for the same product, due to reasons other than cost difference. It relies on various conditions ...

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