Search over 10,000 free study notes

A country is likely to benefit from higher rates of GDP growth. This is because access to a greater market size means greater export potential for countries like Malawi to exploit their comparative advantage...

Price elasticity of demand is the responsiveness of demand to a change in price. (Definitions are key in economics!)1. The number and closeness of substitutes, if a good has many close (similar) substitutes,...

In the long run, all factors of production are variable. Also, two of the assumptions of firms in perfect competition are free entry and exit, as well as perfect resource mobility. In the long run, firms mak...

Monopolies generate economic profit and are therefore better able to invest in research & development which may improve their productive effiency, making them more dynamically efficient over time.

In the dynamics of a certain market, it would be externalities as a consequence of the normal operation of buying and selling of this market. An externality happens when a third-party (not involved in the op...