Answer:
it is not allocatively efficient
Explanation:
Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.
Answer:
Price floor binding
b. price ceiling binding
price floor and binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The minimum price of milk is above equilibrium price. So, it is a binding price floor
The maximum price of milk is below equilibrium price. It is binding price ceiling
If teenagers can't find jobs due to minimum wages law. It means that the minimum wage must be above equilibrium price. This is because it is when price is above equilibrium price that supply of labour outstrips demand. So, it is a binding price floor
Answer:
It is "following an expansionary monetary policy".
Explanation:
When the central bank uses expansionary monetary policy, money supply increases and the interest rates decreases, this will lead to no change in aggregate demand. It also affects the value of the currency and that is lowering its value but there is improvement in growth of domestic economy.
When the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.
<h3>What is Federal Reserve?</h3>
It should be noted that the Federal Reserve controls the monetary aspect in an economy.
In this case, when the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.
Also, when the Fed wants to decrease the money supply, the thing that should be done will be to sell bonds.
Learn more about Federal Reserve on:
brainly.com/question/25817380
Answer:
a) Head sets - perfect competition
b) Smart phones - monopolistic competition
c) Cellular telephone service - oligopoly
d) Cell phone applications - monopolistic competition
Explanation:
The following definitions explain the categorisation of competition:
- Perfect competition is when many firms sell similar products, no firm or buyer has control of market price. The barriers to entry are low. This is characterised by headsets
- The market for smart phones is monopolistic competition because advertisement is used to create product differentiation with the aim of gaining better market control
- Oligopoly is characterised by few firms controlling the market and keeping each other from dominating the market. This is they type of competition for cellular telephone service.
- Monopolistic competition is one where many firms produce dirlfferentiated products that are not substitutes. This is shown in market for cell phone applications
