If one were to discuss why the term “monopolistic competition” is used, the best description would be that the industry is “monopolistic” because

Q: . What does the AD curve represent economically

A: Aggregate Demand: It refers to the demand of total goods and services at all given prices which are…

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A: Colonialism:  The policy or practice of acquiring full or partial political control over another…

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A: Formula for WACC (weighted average cost of capital) is given as:  = (weightage of equity*cost of…

Q: Suppose output and income is equal to 22400, the marginal propensity to consume is 0.60, and…

A: In the absence of the public sector and foreign sector Y=C+I At equilibrium the saving is equal to…

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A: Investment, in economics, means the purchase of goods that are not consumed today but are used in…

Q: Suppose the information in the following table is for a simple economy that produces only four goods…

A: GDP is the gross domestic product.  GDP is the market value of all final goods and services produced…

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A: Increase in money supply is known as expansionary monetary policy. Decrease in money supply is known…

Q: gate supply cur slopes upward in the SHOPE FOR In the short run, the quantity of output supplied by…

A: The SW theory estimates that the worker's pay will in general answer to changes in organization…

Q: Quantity 0 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 4,000 5,800…

A: In perfectly competitive market, there are many firms producing identical goods. This makes…

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A: The cutting of interest rate is a part of expansionary monetary policy wherein the Central Bank of a…

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A: The machinery should be replaced or it should not be replaced it can be determined by calculating…

Q: Describe with the help of graphs the long-term equilibrium of a monopolistically competitive market.…

A: A market structure known as monopolistic competition occurs when there are several vendors selling…

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A: Total cost is the sum of fixed cost and variable cost.  Fixed cost are the cost that doesn't change…

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A: In perfect competition,  There exists a large number of buyers and sellers.  The firm will produce…

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A: Cost of production is the total expenditure incurred during the production process of goods and…

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A: A tax that is proportional to the value of the goods (here, x1 and x2) being taxed is termed an ‘ad…

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A: The part of the balance of payments that records a country's international transactions involving…

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A: The IS-LM model is a macroeconomic model that shows the relationship between interest rates and…

Q: What is the link between the changes of inflation and monetary policy?

A: Monetary Policy: Monetary policy refers to the policy instruments with the central bank of a country…

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A: Marginal cost is the additional cost that a firm incurs by producing one more unit of output. It is…

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A: Marginal Revenue: The additional revenue derived by the firm by selling additional units is called…

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A: The incremental rate of return is used to find the most preferred alternative when two or more than…

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A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

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A: A macroeconomic model is a tool that helps to explain the problems of a country and tries  to solve…

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Q: a) What is the level of production maximizes the short-term profits of this company? b) What price…

A: The monopolistic firms are not efficient because these firm charges higher prices and has high…

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A: A good is sold by several distinct companies in a monopolistically competitive market, but each one…

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A: The term capital outflow alludes to the development of monetary capital (cash) between economies.…

Q: SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error…

A: The revenue could be raised in case of elastic demand , by lowering the price of the good. On the…

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A: (a) Payoff matrix of Player 1 and Player 2.

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A: Complementary goods are products that are typically consumed or used together, so an increase in…

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A: The actual level of real GDP occurs at the intersection of the AD and SRAS curves.  Long run…

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A: The dynamic aggregate demand and the dynamic aggregate supply model represents the continuous…

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A: NGDP targeting is a monetary policy structure that proposes the central bank, like the Federal…

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A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.…

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A: In economics, the term "multiplier" implies the idea that an initial change in spending or…

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A: Trade restrictions are limitations set on the flow of goods and services from one country to the…

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A:

Q: The following graph represents the money market for some hypothetical economy. This economy is…

A: Central bank of a nation controls the money supply in the economy.  A change in money supply changes…

Q: Isnt the price to 2 and 3 34 and 45 respectively.

A: Perfect Competition: Perfect competition is a market structure where there are a large number of…

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A: Given  Actual real GDP =$13.74 trillion  Potential GDP =$12.69 trillion. Marginal propensity to…

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A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…

Q: Briefly discuss the importance of the Depository Institutions Deregulation and Monetary Control Act…

A: Monetary control alludes to the moves made by a central bank or monetary power to manage the supply…