Define open Market operation
Open Market operation: Open Market operations term to the purchase or sale of government securities in an open market by the central bank of country.
In which market type, there is a requirement for selling or advertising costs? Answer: Beneath monopolistic competition, there is a requirement of selling costs sin
You are more probable to shop at a remote farmers’ market quite than buy apples at a local grocery store while: (w) possible, since produce is cheaper at the farmers’ market. (x) you would like to buy only vegetables and fruits. (y) the opportunity costs o
Unlike a firm within purely competitive long run equilibrium, within the long run, there a monopolistically competitive firm which does not price discriminate: (w) produces where P = MC. (y) does not price at the bott
Relationship between MPS and multiplier:K=1/1-MPC = 1/MPS or inverse relationship between MPS and the size of multiplier.
Refer to the below diagram. Give me answer of this question. If equilibrium real output is Q2, then: A) aggregate demand is AD1. B) the equilibrium price level is P1. C) producers will supply output level Q1. D) the equili
Economic losses in an industry generate competitive pressures which cause: (1) industry output to fall. (2) market price to decrease. (3) each firm’s short-run output to increase. (4) rising costs for industry inputs. (5) firms to expand product
Describe the basis of categorizing goods into intermediate and final goods. Give appropriate illustrations.
Diseconomies of Scale: The diseconomies are the drawbacks occurring to a firm or a group of firms due to big scale production.Internal Diseco
When an incumbent firm uses an edge pricing strategy: (w) this can maximize short run profits and discourage entry in the market. (x) this may not be maximizing short run profits, but this can make positive economic profits over the long run. (y) the
The advantage of a partnership is: (i) Its ease of organization as compared to the corporation. (ii) Its limited liability. (iii) Its capability to outlive the partner’s death. (iv) The lack of divergences. C
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