Deregulation is when the government reduces or eliminates restrictions on industries, often with the goal of making it easier to do business. It removes a regulation that interferes with firms’ ability to compete, especially overseas.
Where does a monopolistically competitive firm price its product?
Long Run Equilibrium of Monopolistic Competition: In the long run, a firm in a monopolistic competitive market will product the amount of goods where the long run marginal cost (LRMC) curve intersects marginal revenue (MR). The price will be set where the quantity produced falls on the average revenue (AR) curve.
What describes an oligopoly?
Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms. A monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.
When the government deregulates an industry what does it expect will happen?
34 Cards in this Set
| When is a buyer NOT willling to spend a lot of time and energy researching the market? | when the savings to be made are small |
|---|---|
| When the government deregulates a product or service, what happens to it? | some government regulations over the industry are eliminated |
What is the largest source of income for banks *?
Interest received
Interest received on various loans and advances to industries, corporates and individuals is bank’s main source of income. 1 Interest on loans: Banks provide various loans and advances to industries, corporates and individuals. The interest received on these loans is their main source of income.
What is one important disadvantage of the gold standard?
What seems to be a disadvantage of the gold standard monetary policy? 1. Following a gold standard would mean that the amount of money would be determined by the supply of gold, and hence monetary policy could no longer be used to stabilize the economy in times of economic recession.
What are the three characteristics of monopolistic competition?
Characteristics of Monopolistic Markets
- Single supplier. A monopolistic market is regulated by a single supplier.
- Barriers to entry and exit.
- Profit maximizer.
- Unique product.
- Price discrimination.
