Microeconomics, Monopoly, Monopoly Output Decision
When we are talking about an Imperfect competitive firm who is a price taker and has enough market power to have its Products price above the Marginal cost, than we also need to find out what would be that correct price and output that a monopolist must use to have...
Microeconomics, Monopoly, Monopoly Output Decision
When firms have some control over the price of their product, we call it an IMPERFECT COMPETITION. This also means that the firm has MARKET POWER; ability to raise price without losing all of the quantity demanded for their product. Thus, Market Power + Imperfect...
Current Economics, Macroeconomics, Microeconomics, Misc
Every course has its own particular method of solving it. From preparatory courses to the usual theoretical ones, you need to take some smart step in solving your questions and these factors must also be applied to the papers of Economics. Because it is not just about...
Current Economics, Macroeconomics, Microeconomics
I came across some very worth noticing links that has alot to tell about economics including other sub-domains of economics. And i am so very happy to see alot of courses were free and provided a certificate of completion. The links are as follows. 1. Open culture has...
Microeconomics, Perfect Competition
1. Perfectly competitive firm cannot affect the market price Because all the products sold in the market are identical–any rise in price leads to loss of customers Because there are many buyers and sellers- so the firm isn’t the only firm which sells that...
Current Economics, Microeconomics
Everyday in our live we get to see something , somewhere and somehow related to Economics. Think about the cup of coffee your are having every morning, or the amount of sugar you are adding. About the telephone service you are using or internet package that enables me...
Consumer Choice, Income and Substitution Effect, Microeconomics
Whenever policy makers want to measure the impact of a change in prices on consumers, welfare analysis comes into play. Given that reforms adopted can either create or destroy value, an assessment is needed of whether the measure taken will increase or decrease the...
Microeconomics, Monopoly, Monopoly Output Decision
The output decisions in case of monopoly differ in respects of the time period or the length of time span through the monopoly firm is operating. There are two kinds of time periods; i. Short Run: It is a time period in which one of the variable is fixed i.e could not...
Kinked Demand Demand Theory, Oligopoly
Forms of Oligopoly There are two forms of oligopoly structure; i. Collusive Oligopoly: In such oligopoly few firms unite together through a formal or informal agreement. The example for formal agreement is cartels and the example for informal agreement is price...
Microeconomics, Monopoly, Monopoly Inefficiency
The economic inefficiencies of monopoly can also be regarded as demerits or disadvantages of monopoly. Monopoly is definitely a harmful element of an economy as a single firm rules over the economy and sets the prices of commodity, which has no substitute in the...
