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Showing posts with the label An imperfect market

U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...

An imperfect market

Characteristics of an imperfect market The characteristics of an imperfect market are different from those of a perfectly competitive market. In an imperfect market, there are various barriers to entry, few competitors, and differentiated products. Here are some of the common characteristics of an imperfect market: Market power: Firms in an imperfect market have some degree of market power, which means they can influence the market price by adjusting their level of output. They may have the ability to set prices above their marginal cost and earn economic profits. Barriers to entry: There are significant barriers to entry in an imperfect market, which prevent new firms from entering the market and competing with existing firms. These barriers can include legal restrictions, high start-up costs, access to distribution channels, and intellectual property rights. Product differentiation: In an imperfect market, firms often sell differentiated products, which means that each firm's ...