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Excess supply is a form of allocative inefficiency where the supply of a good or service becomes greater than the demand for this good or service in the market. This often happens because the price for a goo...

Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. Opportunity cost is the 'next best alternative forgone'. So for simplicity l...

Firstly it is important to understand the assumptions of perfect competition.They are as follows:-Large number of buyers and sellers-Homogenous (identical) goods-No barriers to entry or exit-Firms are price ...

A factory producing clothes would likely produce air pollution. This is a negative externality as it is an unintended consequence of production.

An oligopoly is a market which is dominated by a small number of firms. With a small number of firms in the market there is less competition between firms and therefore prices are unlikely to be best for the...