A duopoly is a market structure dominated by two firms. A pure duopoly is a market where there are just two firms. But, in reality, most duopolies are markets where the two biggest firms control over 70% of the market share. Characteristics of duopoly Strong barriers to entry in the market, e.g. brand loyalty (Coca-cola …
Sustainable economic growth implies that the growth rate can be maintained over the long term. Sustainable growth involves both Environmentally sustainable growth – e.g. not exploiting scarce resources. Sustainable growth in terms of low inflation and a balanced economy. Sustainable economic growth The long-run trend rate of economic growth is the rate of economic growth …
A look at the arguments for and against privatisation. Privatisation involves selling state-owned assets to the private sector. It is argued the private sector tends to run a business more efficiently because of the profit motive. However, critics argue private firms can exploit their monopoly power and ignore wider social costs. Privatisation is often achieved …
Vulture capitalism refers to the practice of buying up struggling firms, stripping them off their assets and enabling a few venture capitalists to make a high profit at the expense of genuine business and ordinary workers. The term originates from the Vulture bird which looks for distressed animals and then finishes them off. Vulture capitalism …
The minimum wage for workers aged 16-18 is £4.55 (April 2020-21) For workers, aged 18-20 is currently £6.45 (April 2020-21) Readers Question: What are the minimum wage rates for 16, 17 and 18-year-olds. Should the minimum wage be increased? Should there be a minimum wage rate for children under 16? Minimum Wage Rates from April …
Oil prices tend to be volatile for a few reasons. Demand varies with the economic cycle. Changes in the price of oil can be magnified by speculators who buy forward contracts Supply is quite inelastic in the short-term. Therefore, a small change in demand can have a significant impact on the price. Firms and consumers …
Degrowth is a political and economic theory which emphasises changing priorities of society from economic growth and production to a society based on sustainability, well-being, concern for environment and co-operation. The motives for pursuing degrowth include the need to provide environmental sustainability for the long-term and improve quality of life. Critics argue degrowth is a …
Economies face many events that cause firms and consumers to adjust their behaviour. New technology, demand-side shock, supply-side shock all cause a change in the priorities of the economy. In theory, the price mechanism will lead to a smooth reallocation of resources as capital and labour are deployed from unproductive areas to new areas. Some …