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Consider competitive markets, monopolies, and oligopolies. What role does each of these play in an economy? o What are the characteristics of each market structure? o How is price determined in
each market structure in terms of maximizing profits? o How is output determined in each market structure in terms of maximizing profits? o What are the barriers to entry, if any? o What role does each market structure play in the economy?
In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. [ Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may
approximate the concept. Perfect competition serves as a benchmark against which to measure real-life and imperfectly competitive markets. In economics, a monopoly (from Greek monos / µ???? (alone or single) + polein / p??e?? (to sell)) exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. (This is in contrast to a monopsony which relates to a single entity's control over a market to purchase a good or service, and contrasted with oligopoly where a few entities exert considerable influence over an industry)[1][clarification needed] Monopolies are thus characterised by a lack of economic competition to produce the good or service and a lack of viable substitute goods.[2] The verb "monopolise" refers to the process by which a firm gains persistently greater market share than what is expected under perfect competition. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). The word is derived, by analogy with "monopoly", from the Greek ?????? (oligoi) "few" + p??e?? (polein) "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms. Strategic planning by oligopolists needs to take into account the likely responses of the other market participants. It decides by comparing the marginal revenue brought in by an additional unit of a factor of production compared to its marginal cost. If the marginal revenue is above marginal cost, then it decides to continue demanding the factor of production. ]
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address the following historical event in terms of labor supply and demand: the Great Depression. Include the following: o What was the impact on the supply and demand of labor on one sector of the labor market? o Explain the factors that affected labor demand and labor supply in the the Great Depression.
Weegy: The Great Depression was a severe worldwide economic depression in the decade preceding World War II. [ The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s.[1] It was the longest, most widespread, and deepest depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline.[2] The depression originated in the U.S., starting with the fall in stock prices that began around September 4, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world. The Great Depression had devastating effects in virtually every country, rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%.[3] Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60%.[4][5][6] Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining and logging suffered the most.[7] Some economies started to recover by the mid-1930s. However, in many countries the negative effects of the Great Depression lasted until the start of World War II.[8] Figure 15 (from my new paper "What Caused the 2008 Recession? Hints from Labor Productivity") is a scatter plot contrasting this recession and previous ones along these dimensions. Each recession is one data point in the chart. The horizontal axis measures the change in the log productivity residual from one quarter prior to the NBER peak to the fourth quarter following the NBER peak. The ... (More)
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