The ratio of the increase in equilibrium real GDP to the increase in autonomous expenditure is named the multiplier. In addition, when the economy is at full occupation, the aggregate demand is equivalent to the aggregate source. In other words, the total amount of goods and services necessitated by consumers is equal to the total quantity of goods and services made by producers. The full employment GDP happens when the labor market is in balance. The autonomous expenditure is used to define the constituents of an economy aggregate expenditure that is not obstructed by that similar economy real level of revenue.
Answer:
Does not have the ability to control the price of the product it sells
Explanation:
A price taker is a firm that doesn't have the ability to control the price of the product they sell.
Price taker exist in a perfectly competitive market where individual firms cannot dictate prices of goods and services.
A perfectly competitive market is characterised by
1) presence of large number of buyers and sellers.
2) There is free entry and exit.
3) Sellers sell homogenous product, that is, identical product.
4) Buyers have access to information.
In contrast to price taker, we also have price makers who have the ability to control the prices of product they sell.
Answer:
the answer is A. inefficiency
Answer: A positive externality, negative externality and asymmetric information
Explanation:
A market failure is one of the type of economical situation in which the the various types of products and the services are distributions in an inefficient manner.
A positive externality, negative externality and an asymmetric information are the market failure that the government wants to change by the process of intervention
Externality is one of the type of advantage or cost that basically affect the third party in the economics so the free market under consuming the various types of products. Therefore, the given answer is correct.
Return on assets = .138/(1+ .72414) = .08, or 8 percent.