We often make a comparison between monopoly and perfect competition. Such a comparison is done in Fig. 7. If Fig. 7 represented the position of a firm under perfect competition then the equilibrium output would be OQ (where P = MC) and the price would be OP. If, however, the diagram were to represent a monopoly situation, the equilibrium output [...]
Learn about the comparison between loanable funds theory and preference theory. Two main theories of interest that have been an integral part of economics since the 1930s are the loanable funds theory and the liquidity preference theory. In sum, the loanable funds theory holds that the interest rate is determined by the demand for and supply of loanable funds only, [...]
Learn about the comparison between the Classical View and Keynesian View of Macro-Economy. Before the publication of Keynes' General Theory in 1936, economists all over the world believed in classical view of the economy. The classical economists were little concerned with unemployment, because they adhered to the Say's Law of Markets, put forward in 1803. According to the Say's Law, [...]