|
|
REALISM OF MONOPOLY: If taken to the extreme, monopoly, like perfect competition is an ideal market structure that does not actually exist in the real world. In the extreme, a "pure" monopoly is a market containing one and only ONE seller of good, a good with absolutely, positively no substitutes. The product is absolutely, certifiably unique. It's not just that it has no CLOSE substitutes, it has NO substitutes. Period. End of story. In the real world, however, every product, no matter how seemingly unique it might appear, has substitutes. The substitutes might not be very close. They might be really, really bad substitutes. But they are substitutes. As such, there are no pure monopolies in the real world.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 1: Economic Basics | Unit 5: Policies
|
Page: 14 of 18
|
Because markets are imperfect, government is prompted to intervene with economic policies.- Economic policies are government actions designed to affect economic activity and pursue one or more economic goals.
Policies can take the form of:- Laws passed by legislatures.
- Administrative actions taken by elected executives.
- Rules set forth by government agencies.
- Decisions made through the courts.
The government has four types of policies.- Fiscal policy: Based on government's power to collect taxes from the public and spend those funds as it chooses. Used for income redistribution and macroeconomic performance.
- Monetary policy: Based on government's centralized control of the money supply. Used for macroeconomic performance.
- Regulatory policy: Based on government's ability to enact laws, rules and restrictions. Used for efficiency and equity
- Judicial policy: Based on government's ability to enforce laws through the courts. Used for efficiency and equity
|
|
|
|
|
|
|
AVERAGE FACTOR COST CURVE A curve that graphically represents the relation between average factor cost incurred by a firm for employing an input and the quantity of input used. Because average factor cost is essentially the price of the input, the average factor cost curve is also the supply curve for the input. The average factor cost curve for a firm with no market control is horizontal. The average revenue curve for a firm with market control is positively sloped.
Complete Entry | Visit the WEB*pedia |
|
|
PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale wanting to buy either a combination CD player, clock radio, and telephone (with answering machine) or a revolving spice rack. Be on the lookout for celebrities who speak directly to you through your television.
Your Complete Scope
This isn't me! What am I?
|
|
|
On a typical day, the United States Mint produces over $1 million worth of dimes.
|
|
|
"A leader, once convinced that a particular course of action is the right one, must . . . be undaunted when the going gets tough." -- President Ronald Reagan
|
|
ABA
American Bankers Association, Associate in Business Administration
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
