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What are barriers to entry?

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 because in the short run...
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Answered by Kathryn C. • Economics tutor
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Analyse and Evaluate the effects of an reduction in government spending on the economy.

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 to match lower demand...
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Answered by Harry D. • Economics tutor
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Explain why monopolies may be an undesirable form of market structure

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 power and the Competition ...
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Answered by Jessica F. • Economics tutor
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Why have inequalities increased in recent years?

Income can be defined as a flow of factor incomes, such as earnings, dividends and rent. Alternatively, wealth is a stock of financial and real assets including savings, deposits and property. Inequalities i...
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Answered by Jessica F. • Economics tutor
3873 Views

Explain the difference between the Monetarist and Keynesian views of unemployment

Monetarists believe that prices and money wages are flexible and can adjust quickly, meaning that the real wage is at the right level to achieve long run equilibrium in the labour market. All unemployment is...
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Answered by Tom H. • Economics tutor
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