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In a perfectly competitive market setting, a firm is a price taker as it cannot have any say in setting the prices of its goods and has merely to accept the market price. According to Agarwal (2017), there are two key reasons why a firm cannot get away with fixing its price above the market price. First, there is no variance between its merchandise and that of each other firm in the market. As a result, no single customer would be will...
The paper prepares a case study on current state of Australian economy with particular focus on monetary policy decision of Reserve Bank of Australia. The monetary policy decision of RBA based on analysis of overall macroeconomic environment of Australia with special attention given on achieving stable growth and price level. After a number of adjustment in the official cash rate RBA has kept the interest rate fixed...
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The Australian economy
The global economic expansion will be taking place and the rate of unemployment will fall as the advanced economies are low. The economic growth can be termed as the process where the real per capita income of the country will be increasing over a long period of time. In the present years, the economic growth is termed as the basic issues. Economic growth can also be stated as the rise in the total physica...
In a perfectly competitive market, firms are price taker as none of them can change the market price. New firms can enter into the market without any restrictions and each of them sells similar products. Therefore, each firm possesses a very small portion of the entire market. According to the characteristic of this market, each firm and each consumer has perfect knowledge of others (Cowell, 2018). If one of them change price then ...
Some real life examples of monopolistic competitive market are restaurants, hairdressers, designing clothes, different petrol stations and different television programmes. They operate under this market structure because there are large numbers of similar organisations and every one operates independently (Parenti, Ushchev & Thisse, 2017). Though they are selling same types of products, all products are not exactly same. They are c...
Macroeconomics is unit of economics which focuses on behavior and enactment of an economy. It is based on the aggregate fluctuations in the economy such as growth rate, unemployment and inflation. Most governments and organizations use macroeconomic simulations to enable them formulate economic strategies and guidelines.
Australia has a very sturdy economy that has experienced many highs and lows in past years. It theref...
The global economy has experienced considerable dynamics over the last few decades, owing to the different international as well as country specific phenomena across the world, occurring over time. While the international phenomena include those of Globalization, industrial revolution, trade liberalisation and technological as well as infrastructural innovations, the internal ones include the economic changes undergone by...
Global economy is now undergoing several structural change. In a world of globalization, changing dynamics on one nation spread over other nation. Measuring economic performance of a nation involve analysis of economic performance in different dimensions. Some of the key economic indicators include GDP, unemployment, rate of inflation and others. Every economic aims to achieve a stable economic growth along with a low level of unemploy...
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