![]() ![]() Price Determination in a Competitive Market.Market Equilibrium Consumer and Producer Surplus.Determinants of Price Elasticity of Demand.Cross Price Elasticity of Demand Formula.Effects of Taxes and Subsidies on Market Structures.Monopolistic Competition in the Short Run.Monopolistic Competition in the Long Run.Behavioural Economics and Public Policy.Therefore, they can set unattainable prices that can badly affect the economy. How can Monopoly hamper factor markets?Īnswer: In a monopoly, only one seller, i.e., a small group of leaders decides on the input prices. All four principles work together to keep the economy stable. What are the principles of the factor market?Īnswer: Factors of production include land, labor, capital, and entrepreneurship. For example, Weyerhaeuser Co. is an input market, whereas IKEA is an output market. ![]() What are the input market and output market?Īnswer: An input market is where all the basic production resources are available, while the output market results from the production activity. Others include posting job openings and worker vacancies.Įxamples are a farmers’ market, a store with various goods, an Apple showroom, a theater, etc.įrequently Asked Questions(FAQs) Q1. It satisfies the demands and desires of the consumer.Ī bank providing money to businesses is one example. It is the marketplace for finished goods and services.īusinesses typically hire more people if there is a high demand for their manufactured goods. It is a marketplace for purchasing and selling various production elements such as land, capital, and labor.
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