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Why cannot firms in perfect competition sustain supernormal profits in the long run?

Define key terms in the question:-The model of Perfect Competition describes a market where there is high degree of competition, with many buyers and sellers in the market.- Supernormal profit is the excess ...
MF
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Explain three possible reasons for growth in the value of an economy’s exports of goods.

Net exports is the total value of all goods and services exported. The value of this can go up without necessarily increasing the volume of goods and services being exported, this requires a change in the co...
RM
Answered by Rohan M. • Economics tutor
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What are the Four factors of production?

The four factors of production are Capital, Land, labour and Enterprise/EntrreprenurshipAn easy way to remember this is with the anagram CELL.
GJ
Answered by Gus J. • Economics tutor
4509 Views

Why might expansionary demand side policies not always be effective in promoting economic growth?

Expansionary demand side policies focus on increasing Consumption and Investment within the economy. By increasing these components of real GDP, the economy will normally increase its' output and decrease it...
CH
Answered by Charlie H. • Economics tutor
2303 Views

What would be the effect of a rise in consumption in the economy, use a diagram to help illustrate this effect.

A rise in consumption in the economy would cause an increase in aggregate demand. This is because the formula of aggregate demand is C+I+G+(X-M), with the C standing for consumption. Therefore, a rise in con...
CW
Answered by Chris W. • Economics tutor
15207 Views