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No Downloads. Views Total views. Actions Shares. No notes for slide. Monopoly presentation 1. MONOPOLY 2. The economies of scale arise from natural supply and demand conditions, and not from government actions.
AVERAGE AND MARGINAL REVENUE UNDER MONOPOLY In the case of monopoly one firm constitutes the whole industry. Therefore, the entire demand of the consumers for a product faces the monopolist.
Since the demand curve of the consumers for a product slopes downward, the monopolist faces a downward sloping demand curve.
AVERAGE AND MARGINAL REVENUE CURVES UNDER MONOPOLY ARandMR Quantity Q M K P Y AR MR 6. It is categorized under Indirect Tax and came into existence under the Finance Act, Description: In this case, the service provider pays the tax and recovers it from the customer.
Service Tax was earlier levied on a specified list of services, but in th. A nation is a sovereign entity. Any risk arising on chances of a government failing to make debt repayments or not honouring a loan agreement is a sovereign risk.
Description: Such practices can be resorted to by a government in times of economic or political uncertainty or even to portray an assertive stance misusing its independence.
A government can resort to such practices by easily altering. A recession is a situation of declining economic activity. Declining economic activity is characterized by falling output and employment levels.
Generally, when an economy continues to suffer recession for two or more quarters, it is called depression. Description: The level of productivity in an economy falls significantly during a d.
It is always measured in percentage terms. Description: With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good.
Related goods are of two kinds, i. The ratio of liquid assets to net demand and time liabilities NDTL is called statutory liquidity ratio SLR.
Description: Apart from Cash Reserve Ratio CRR , banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities.
Treasury bills, dated securities issued under market borrowing programme. In the world of finance, comparison of economic data is of immense importance in order to ascertain the growth and performance of a compan.
Description: Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country.
Simply state. Marginal standing facility MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
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Email ID. Contact No. EDUCBA Login. The supernormal profit can enable more investment in research and development, leading to better products.
A firm may gain monopoly power because it is very innovative and successful, e. Google, Amazon, Apple. Therefore, monopoly does not always lead to inefficiency.
Home Shop Economics A — Z Blog Contact 0. This leads to a decline in consumer surplus and a deadweight welfare loss Allocative inefficiency.
A monopoly is allocatively inefficient because in monopoly the price is greater than MC.