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A perfectly competitive market structure possess 4 defining characteristics. 1- Homegenous goods (all goods produced by different suppliers are of same quality and form, eg. Oranges) 2. No barriers to ent...
A negative externality is a spillover cost affecting a third party from an economic transaction.A negative externality that arises from fuel consumption is the air pollution affecting the health of the po...
By merging a firm will grow in size allowing to benefit from economies of scale as the average cost of producing is reduced. In the case that the merge is horizontal the firm will gain market share as wel...
To ensure resources are not wasted.
Inflation is defined as a persistent increase in the average price within a country, in other words a decrease in the purchasing power of a currency. There are two main groups that the reasons for inflati...
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