Answer:
If GDP and consumption both rise by $6 billion in the second round of the process, what is the MPC in this economy?
What is the size of the multiplier?
If, instead, GDP and consumption both rose by $8 billion in the second round, what would have been the size of the multiplier?
Explanation:
Since the change in consumption is $6 billion, and the initial expansion in investment was $10 billion, the marginal propensity to consume (MPC) = expansion in consumption / initial expansion = $6 / $10 = 0.6
the economy's multiplier = 1 / (1 - MPC) = 1 / (1 - 0.6) = 1 / 0.4 = 2.5
If both the economy and the GPD had expanded by $8 billion, the MPC = $8 / $10 = 0.8, so the economy's multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5
Another way to determine the multiplier = 1 / MPS (marginal propensity to save), since MPS = 1 - MPC
Elotrik best illustrates the concept of design competition by trying to counter and stay in the market.
<h3>What is design competition?</h3>
This is a procurement strategy that is used in business in order to have an organization stay in a market.
This is what this business has obviously done here through the introduction of new offers as well as discounts.
Read more on design competition here:brainly.com/question/1622190
Answer:
I can't provide a definite answer (apologies), but I can definitely say that the answer is narrowed down to where it's either A or D.
Explanation:
Explanation:
There are several barriers to entry in a market that can hinder the creation of a new business, the ones that most impact new entrepreneurs are the financial, technical and structural barriers.
There is the configuration of a monopoly market where there is a single company that controls the market and resources, influencing prices and hindering new entrants.
There are also capital difficulties, where the cost of opening and maintaining a business makes it difficult for new entrepreneurs to enter the market in the long term in a competitive manner with larger companies, for example.
And there are also technical barriers, which can be understood as the lack of specific knowledge for a particular business operation.
