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Explain how price and output are determined in both the short run and long run in a monopolistically competitive market (15 marks)

Firstly define some features of monopolistically competitive market including: differentiated products, some influence over price, good information, no barriers to entry or exit, manyproducers and consumersD...
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Answered by Emma P. • Economics tutor
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What are tariffs and why are they used?

Tariffs are a tax a government puts on good which are imported into a country. This increases the price per unit of the imported good and is often used by governments o attempt to encourage individuals to pu...
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Answered by Nathan F. • Economics tutor
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What are diminishing returns?

The Law of Diminishing Returns is a fundamental theory and pertains to a production function in the short run. It is important to note that Diminishing Returns does not work the same way in the long run. To ...
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Answered by Nathan F. • Economics tutor
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With the help of a diagram, explain how collusion between energy suppliers could affect the retail prices paid by consumers. (9)

Collusion is when firms cooperate for mutual benefit. This usually occurs in oligopoly markets such as the energy market, where a few large firms compete for market share. Collusion between energy suppliers ...
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Answered by Oliver W. • Economics tutor
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Discuss the likely impact of a depreciation of the pound on the UK's economy.

A currency depreciation occurs when the value of one currency, in this case the pound sterling, falls in value in terms of another currency, such as the US dollar or Japanese Yen. A depreciation in the value...
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Answered by Charlie C. • Economics tutor
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