What is meant by market equilibrium

Questions:

Q1. What is meant by market equilibrium and how might a market equilibrium change.

Q2. Why might marketing expenditure be important to a firm that operates in an industry that is characterised by monopolistic competition but unimportant to a firm that operates in a perfectly competitive industry?

Q3. How can government’s act to reduce unemployment through monetary or fiscal policy? Why might such action be considered a bad idea?

Q4. Why might borrowing overseas at interest rates lower than domestic interest rates to fund your investment expenditure be a risky strategy?

Answer preview:

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