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A demerit good is a good which is generally both harmful or unhealthy to the consumer - in most instances, they also carry negative externalities, which are costs imposed onto third parties. An example of...
In order to answer, one should consider the benefits of profit maximisation. These may include: satisfying shareholders, using money for savings in order to stay afloat, reinvesting profits into technolog...
In the short run at least one of the factors of production (Land, Labor, Capital and Enterprise) is fixed. Due to this there are short run fixed costs relating from the fixed factors of production. In Eco...
This would be a perfect opportunity to use a diagram to demonstrate how with the imposition of a subsidy, the supply curve will shift to the right to show the fact that more firms can now sell the product...
Fiscal policy is the use of government spending and taxation to control the levels of aggregate demand and aggregate supply in an economy.When an economy is recovering from a recession, the real rate of G...
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