Smart meters have the ability to give both consumers and firms live readings of how much gas and electricity you are consuming. It saves having manual meter readings and will increase the efficiency of energy supplies. It gives consumers a running total of how much they have spent on gas and electricity and helps to …
A citizen’s income, basic wage or Universal basic Income (UBI) is a concept of paying everyone in society a universal benefit – regardless of income and circumstances. The main advantage is that ensures a minimum standard of income for everyone – without any costs and bureaucracy of means-tested benefits. Also, it avoids the disincentive to …
Excess consumption of sugar is linked to several health problems, such as obesity, diabetes, and tooth decay. Consumption of sugar imposes costs on individuals (lower life expectancy) and the rest of society (higher health care costs + lower productivity). A tax on sugar would discourage consumption and raise tax revenue to fund improved health care. …
Some economists, such as Arthur Laffer, argue that there are circumstances when cutting tax leads to either increased tax revenue or tax revenues stay the same. The logic is related to the incentive effects of tax cuts on productivity and growth. If income tax rates are too high, then workers may be discouraged to work. …
To what extent does an increase in profit lead to an increase in economic welfare? In summary. Higher profit enables firms to invest in more research and development, leading to better products in the long-term. Higher profit also acts as a signal to other entrepreneurs to increase investment in that industry. However, others are concerned …
Total revenue (TR): This is the total income a firm receives. This will equal price × quantity Average revenue (AR) = TR / Q Marginal revenue (MR) = the extra revenue gained from selling an extra unit of a good Profit = Total revenue (TR) – total costs (TC) or (AR – AC) × Q Profit …
Microeconomic topics Consumer and producer surplus Demand Substitute goods Complements Economies of scale Elasticity Price elasticity of demand Cross elasticity of demand Income elasticity of demand Price elasticity of supply Market equilibrium Production possibility frontiers Positive and normative statements Opportunity cost Specialisation and division of labour Market failure Positive externalities – the benefit to a …
There are different diagrams that you can use to explain 0ligopoly markets. It is important to bear in mind, there are different possible ways that firms in Oligopoly can behave. 1. Kinked Demand Curve Diagram In the kinked demand curve model, the firm maximises profits at Q1, P1 where MR=MC. Thus a change in MC, …