This is a policy of setting prices close to average cost. It is a way to maximise sales, whilst maintaining normal profits. It is sometimes known as sales maximisation. It will be used by firms who are seeking to increase market share and who don’t seek to maximise profits. Average cost pricing will occur in …
Free market economics believes government intervention should be limited to the protection of private property. It is advocated by many economists especially in the Chicago, and Austrian school of Economics. However, although free markets have advantages, such as greater efficiency, there are several criticisms levelled at purely free market economies. Criticisms of free-market economics Inequality. …
Antitrust is predominantly an American term referring to laws regulating the abuse of monopoly power. Monopolies have various disadvantages for society and consumers. In particular: Higher prices Less choice Less incentives to cut costs and develop new products Monopsony buying power and employment of labour Antitrust laws came into effect in the nineteenth century due …
A takeover of Gala casinos by Rank casino has been referred to the competition commission because it would create a firm with 44% market share.
Readers Question: Assess the impact on market contestability of increased use of the internet? Definition of Market Contestability – Contestability means that a market has freedom of entry and exit. In other words, new firms can enter and leave easily; this creates a permanent threat of competition. Contestability requires low sunk costs (costs that are …
It’s the time of the year when many students are getting to start economics for the first time. It can be a little confusing with so many new concepts and words. But, if we had just one lesson, what could we teach about economics? Society wishes to optimise the distribution of resources. Economics considers how …
20 AS model macro essays
19 micro AS Essays.
Available for immediate download after purchase