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ACTIVIST POLICY: Government policies that involve explicit actions designed to achieve specific goals. A common type of activist policy is that designed to stabilize business cycles, reduce unemployment, and lower inflation, through government spending and taxes (fiscal policy) or the money supply (monetary policy). Activist policies are also term discretionary policies because they involve discretionary decisions by government. A contrast to activist policy is automatic stabilizers that help stabilize business cycles without explicit government actions.
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Lesson 18: Monopoly | Unit 4: Evaluation
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Page: 24 of 30
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- The monopoly profit-maximization production level is not efficient.
- A comparison between monopoly and perfect competition is relatively straightforward.
- Monopoly produces less output that perfect competition. In this example, production is units compared to 6 units.
- Monopoly charges a higher price than perfect competition. In this example, the price is $7.50 per unit versus $6.75 per unit.
- Perfect competition is efficient because it produces the quantity that equates price and marginal cost.
- Monopoly is NOT efficient because it produces a quantity in which price is greater than marginal cost.
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MARGINAL REVENUE CURVE, PERFECT COMPETITION A curve that graphically represents the relation between the marginal revenue received by a perfectly competitive firm for selling its output and the quantity of output sold. Because a perfectly competitive firm is a price taker and faces a horizontal demand curve, its marginal revenue curve is also horizontal and coincides with its average revenue (and demand) curve. A perfectly competitive firm maximizes profit by producing the quantity of output found at the intersection of the marginal revenue curve and marginal cost curve.
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time at a crowded estate auction hoping to buy either a flower arrangement with a lot of roses for your grandmother or a wall poster commemorating the first day of winter. Be on the lookout for poorly written technical manuals.
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In the Middle Ages, pepper was used for bartering, and it was often more valuable and stable in value than gold.
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"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
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NI
National Income, Net Income
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