Natural monopolies and the reason to exist in the free market system
Explanation:
In a natural monopoly when a market can supply goods or the cost of the goods can be lowered in competition with the potential competitor then it is called as natural monopoly. In a market when the first supplier of the product is demanding more cost or raises the costs of the product then it eventually rises to natural monopoly.
Here the products are given at a lower rate than the capital supplier. They are available in free market because people always tend to go for lower prices and for a good quality product.
Answer:
Chinese New Year is the most important holiday in China. ... Tied to the Chinese lunar calendar, the holiday was traditionally a time to honor household and heavenly deities as well as ancestors. It was also a time to bring family together for feasting.
Explanation:
Answer:
One advantage of using renewable resources instead of nonrenewable resources is the fact that renewable resources will never run out. They are called renewable resources because they are replaced as quickly as used, as well as have a large amount in stock. Examples can be the use of windmills and wind farms in areas of that are extremely windy, as the place will not run out of the natural resource.
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An emergency fund is a financial safety net for future mishaps and/or unexpected expenses. Financial planners recommend that emergency funds should typically have three to six months' worth of expenses in the form of highly liquid assets. Savers can use tax refunds and other windfalls to build up their fund.
Answer:
Prices are often volatile due to inelastic demand. e.g if there is a ‘good harvest’, supply will increase and there will be a fall in the price of primary products. However, because demand is inelastic, this would lead to a fall in revenue.
coffee-supply-price-growers
The volatile price of coffee – can make planning difficult.
Supply can also be volatile due to weather and disease. For agricultural crops, there is always a risk of crop failure, which could cause economic hardship in one particular year.
Limited resources. One day developing economies may run out of its finite primary products, e.g. precious metals could become scarce. Without diversification, this would leave the economy with a void.
Discourages investment in other aspects of the economy. Concentrating on primary products does not always help the long-term development of an economy because it can contribute towards a lack of investment in other aspects such as education and industrial production. Comparative advantage can change over time. It’s important to not just look at the present comparative advantage, but prospects for next 10 or 20 years.
There is a low-income elasticity of demand for primary products. With a rise in global income, there is a proportionately smaller percentage rise in demand for primary products. (agricultural products tend to be income inelastic). Therefore, if you produce primary products, you may see lower rates of economic growth than countries who produce manufacturing goods – which are more income elastic. The Prebisch-Singer hypothesis suggests that countries who concentrate on primary products are vulnerable to a declining terms of trade.
There are 5 points
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