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Can you explain quantitative easing?

Quantitative easing is a monetary policy instrument undertaken by the central bank. The aim of the policy is to increase money supply (liquidity) in the economy - encouraging spending and investment. This is...
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Answered by Lily E. • Economics tutor
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What is the likely effect of Brexit on the UK economy?

Less free trade with EU The European Union is an important source and target for inward investment. Many European companies have invested in the UK and the UK earns revenue from investment in the EU. If the ...
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Answered by Ana W. • Economics tutor
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A firm's long run total cost curve is given by TC(Q) = 1000Q - 30Q^2 + Q^3. Derive the expression for the long run average cost curve and sketch it. At what quantity is the minimum efficient scale?

To get a firm's long run average cost, you need to divide the total cost by quantity. As such, (1000Q - 30Q 2 + Q 3 )/Q = 1000 - 30Q + Q 2 . From this we can see that the long run average cost curve would ha...
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Answered by Christo N. • Economics tutor
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Why is a firm's average revenue equal to their marginal revenue in perfect competition?

Some important conditions of perfect competition are that all firms sell an identical (homogeneous) product, there is a large number of buyers and sellers, and no one buyer or seller can influence the ruling...
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Answered by Oore A. • Economics tutor
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Explain why the price of average tickets has risen by £10 in the last month. Use a supply and demand diagram. (5 marks)

This is an example of a 5 marker in the second part of new spec edexcel paper 1 1 mark for defining supply and demand 1 mark for applying it to context (text provided in the exam) 3 marks for diagram (origin...
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Answered by Jeppe S. • Economics tutor
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