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What are the characteristics of a perfectly competitive market structure?

Perfect competition is a market structure in which there are a large number of small firms competing very intensely. In this market structure no firm has the power to influence the price or supply of traded ...
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Answered by Ismael O. • Economics tutor
3237 Views

Explain how an increase in the level of taxation can affect the level of aggregate demand

Aggregate demand is the sum of consumption, investment, government spending and net exports.Consumption can change for various reasons such as changes in income, taxes, expectations about future income, and ...
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Answered by Jose S. • Economics tutor
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Explain why the use of petrol and diesel cars may be a source of market failure.

Use of petrol and diesel cars causes over-pollution to the environment, which is an externality in the economy. The overconsumption of petrol and diesel cars results in more pollution and emissions than is s...
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Answered by Seb M. • Economics tutor
15183 Views

Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives

Phillips explains that there is a trade off between inflation and unemployment. When there are high levels of demand in the economy, firms hire workers to be able to meet this demand, leading to low levels o...
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Answered by Sophie K. • Economics tutor
10624 Views

How does a natural monopoly differ from the more general monopoly market structure we're used to?

A natural monopoly is a subset of the monopoly market structure that we looked at previously. It's a special case, where a monopoly market structure can be more efficient for society (than opposed to the per...
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Answered by Samuel H. • Economics tutor
2499 Views