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Aggregate demand is based on four components. These are: consumption, investment, government spending and net exports. The equation for this is AD = C + I + G + (X-M). Net exports is the amount of exports...

Difference 1. In a perfectly competitive market marginal revenue is equal to average revenue at all quantity of production and the price for all firms is set at the same value. By contrast, in a monopoly ...

A price ceiling is when a maximum price is set on a good. For a price ceiling to be effective, it must be set below the free-market price. This causes excess demand (a shortage), which might cause people ...

Perfect competition is a market structure dominated by many firms. No individual firm is capable of affecting the market supply curve, so one firm cannot affect the market price; the firms are price take...

This is a clear example of price discrimination, which can be defined as when sales of identical goods or services are transacted at different prices from the same provider. This would not exist in monopo...