Author Question: Differentiate between the four market structures on the basis of the type of products sold. What ... (Read 37 times)

luminitza · **on:** Jun 29, 2018

Differentiate between the four market structures on the basis of the type of products sold.

What will be an ideal response?

Question 2

The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States.

a. What was the value of net exports of goods and services in 1999?
b. What was (nominal) GDP equal to in 1999?
c. What was the (nominal) value of total production equal to in 1999?

robbielu01 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Perfect competitors sell homogeneous products, while monopolistic competitors sell slightly differentiated products. Firms in an oligopoly sell either homogeneous products or differentiated products. However, a monopolist sells a unique product.

Answer to Question 2

a. Net exports of goods and services equals the value of exports of goods and services, 998 billion, minus the value of imports of goods and services, 1,252 billion, or -254 billion.
b. GDP equals the sum of consumption expenditure, 6,258, plus investment, 1,623, plus government expenditure on goods and services, 1,630, plus net exports, -254, or 9,257 billion.
c. The value of total production equals the value of GDP, so total production was 9,257 billion in 1999.