Large firms can produce at lower average cost. Paper 2 Q1 Developments in modern technology, such as faster broadband internet connections, portable DVD players, iPods and MP3 players, have had major impacts on the demand for and supply of recorded music and associated products. Different economies due to their different nature of the economy and constraints will require a different policy mix to encourage both actual and potential growth. Oligopolistic markets enjoy market power. Interests of consumers were not met given the under-utilization of facilities and high market power present in the fuel market.
Hence, allocative inefficiency is reduced. Increasingly we import labour intensive lower added value products as our own labour force focuses on high value added arising from human capital. Factor endowments in Singapore have changed over 40 years. Define and explain both actual and potential economic growth may use AD-AS model or PPC Explain how actual and potential economic growth may be achieved increasing the components. Road congestion resulting in negative externalities due to imperfect information; OR. Q2 Firms pricing and output decisions depend on barriers to entry and the behavior of competitors a Explain why barriers to entry are a key determinant in firms pricing decisions.
Define barriers to entry, dividing into natural and artificial barriers.
If anything it is the other way round the BOP allowed the ex rate to strengthen. Possible causes of low price of Chinese shoes in EU markets: So concept of Exy ecojs be relevant here.
The resulting historical changes, from entrept to lower skilled labour intensive, to capital intensive and eventually to human capital and technology intensive goods sudy services being exported, fits well apart from the early 60’s with theoretical predictions.
It could also lead to economies of scale in production. Evaluations should look at the effectiveness as well as efficiency.
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Industry may be dynamically efficient due to the abilities of firms to make long run supernormal profits. This will lead to a more than proportionate increase in the qty demanded of the recorded music.
Body Explain a variety of market structures: Body There is a need to contrast between a market structure with strong barriers to entry versus one. However, the SWA is right by saying that such tariffs harm Indian consumers causing them to pay more and have less choice.
Q4 Discuss the most appropriate policies that a government could adopt to encourage both actual and potential economic growth. In this case, the protection measures by the EU is not economically justified.
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To manipulate the current account the S’pore government by and large does not use:. Prior to that, it was on a fixed forex system as evident by the fixed forex rate seen in table 4 from to On the one hand intra-industry trade associated with entrept activity is easy to explain. This would result in privatised energy firms focusing on profit maximisation objective. Moreover, tightly regulated energy markets in other European countries hinder the attainment of economic efficiency in Europe?
In such a situation, equilibrium price and quantity do not respond to changing costs which results in allocative inefficiency. UK although pipeline was available and running only half-full – Excess supply highlighted in Extract 2 where there was lack of gas storage facility; and – Low input costs not passed on to consumers due to rigidity in contract for domestic gas.
Oligopolistic markets enjoy market power.
Large firms can produce cae lower average cost. In curing a recession, to what extent can a rise in G offset the fall in CD in big economies like US and the fall in X in extremely small and open economies like Spore? Consider the impact on associated products eg.
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Econe UK price o f natural gas being three times more than that in Netherlands, gas pipeline connecting Netherlands and UK was 3? Moreover, Extract 1 also showed that the steep price increases of natural gas resulted in users switching to electricity. Define dumping — Dumping occurs when goods are sold in overseas markets at a price below the marginal cost of dcons.
This doesn’t work perfectly 1 because FTAs influence which markets are most open to us, hence distorting the pattern a little, and 2 demand influences come into play.
With faster broadband internet connections, this increases the ease of using iPods and the players and hence a greater need for PC, etc. Registered in England and Wales Documents. Cost of producing shoes in China, 2. To manipulate the current account the S’pore government by and large does not use: Overview Part a requires explanation whereas b requires evaluation. In fact price of natural gas close substitute of electricity has increased more than price of electricity between 20088 Answers to Exam December … Documents.
Based on table 3, it is observed that Chinas BOT improved between and