Explain how interest rates affect a country’s economy? When you have money in the bank or the account, you will get interest for it. Thus, the bank borrows money from you. But if you borrow money from the bank you must pay interest, then it is that you borrow from the bank. How do interest … Read more

Reasons that monopolies arise In a company with a monopoly, there is some sort of barrier around the company, which prevents businesses to establish themselves on the relevant market. There are not large monopolies that cover an entire country, but there are local monopolies such as cable TV in a city or a gas station … Read more

Economics – Monopoly Pricing

Posted in Economics on the 07.02.2012

Monopolist’s pricing Causes, marginal income, choice of price and quantity Reasons that monopolies arise In a company with a monopoly, there is some sort of barrier around the company, which prevents businesses to establish themselves on the relevant market. There are not large monopolies that cover an entire country, but there are local monopolies such … Read more

How does a monopoly price and production volume? Monopoly companies determine the cost and quantity on the basis of marginal income. Monopoly Companies can freely determine the price, as long as it provides the greatest possible profit for the company. For companies with perfect competition, marginal revenue equals price, but this is not the monopoly … Read more

The difference between consumer surplus and overall willingness to pay is not that great. Consumer Surplus is the willingness to pay for an item and the price that the item costs you pay for. For example, your willingness to pay for a shirt is not more than 300 dollars, go to the store and see … Read more

The reason for the Cold War To understand the Cold War was all about, one must know a little about the background. It was the result of a series of events and misunderstandings, and the difference between two political ideologies, communism and capitalism. In 1917 there was revolution in Russia and the Communists took power. … Read more

Economics – Terms of Trade

Posted in Economics on the 02.02.2012

Norway is very much with other countries and other countries are investing a lot in Norway. Every year, Norway has had huge surpluses on the current economy, and this is not only because of the high oil revenues, companies with export industries have had much to say. Exports and imports account for a large part … Read more

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