Quick Revision Quiz

C + I + G + (X-M)

A natural monopoly has high fixed costs. This leads to constantly falling AC and MC which is below AC across all output levels. Qmes (minimum efficient scale) which is higher than all output levels.

-Increased UK Price levels make UK exports less competitive. -Higher prices mean lower Exports. -(X-M) decreases.

Businesses can differentiate their products or services by focusing on unique features, superior quality, customization options, exceptional customer service, innovative design, competitive pricing, effective branding and marketing, sustainability initiatives, and delivering an outstanding customer experience.

10

-Workers who have been out of work for long periods of time may have lost the skills and habits of work. -The lower skills may keep them out of the labour market, meaning LRAS is not as high as it could be.

When the government revenues (e.g. taxes) are lower than government spending.

As price levels increase, firms are willing to increase their output because the high prices offer incentives to make greater profits.