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RATE OF RETURN: The ratio of the additional annual income or profit generated by an investment to the cost of the investment. Here's a simple example, although the calculations are usually a great deal more involved for actual investments. If the cost of constructing a new factory is $10 million and it gives you an extra $1 million in profit each year, then its rate of return is 10 percent.
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Lesson 19: Monopolistic Competition | Unit 1: Intro
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Page: 4 of 22
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Topic:
Product Differentiation
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- The characteristic that sets monopolistic competition apart from other market structures is product differentiation.
- Product differentiation is real or perceived differences among similar goods that prompts buyers to pay different prices.
- Product differentiation is achieved in three ways:
- Physical Differences
- Perceived Differences
- Support Services
- When monopolistic competition firms practice product differentiation they seek to balance two things.
- To create enough of a difference that buyers are willing to pay a higher price for the good.
- To maintain enough similarity that buyers treat the good as a close substitute for other goods.
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DISEQUILIBRIUM, LONG-RUN AGGREGATE MARKET The state of the aggregate market in which real aggregate expenditures are NOT equal to full-employment real production, which results in an imbalance that induces a change in the price level and aggregate expenditures. In other words, the opposing forces of aggregate demand (the buyers) and aggregate supply (the sellers) are out of balance. At the existing price level, either the four macroeconomic sectors (household, business, government, and foreign) are unable to purchase all of the real production that they seek or producers are unable to sell all of the full-employment real production that they have.
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WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors wanting to buy either a small, foam rubber football or an instructional DVD on learning to the play the oboe. Be on the lookout for celebrities who speak directly to you through your television.
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North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
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"Recipe for success. Study while others are sleeping; work while others are loafing, prepare while others are playing, and dream while others are wishing." -- William A. Ward
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HDI
Human Development Index
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