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What does it mean when we say that a firm enjoys increasing returns to scale? What are some factors that contribute to a firm achieving increasing returns to scale (or economics of scale) in the long run?
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs. Describe the relation between marginal and average variable costs.
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..
In macroeconomics from williamson (4th edition) in chapter 11, it says that demand for credit is R=q (totally elastic), but in williamsons notation, R is in nominal terms and q in real terms. Isnt that mistaken? Shouldn’t it be r=q? (r=real interest ..
Today's supply curve for gasoline could shift in response to:
Suppose that the US current account deficit must be reduced. Explain in terms of CA ≈ (S – I) + (T – G) what must be done to reduce the current account deficit. Why will this be difficult? (Hint: It may be helpful to think about the household that ha..
Which of the subsequent is directly included in the calculation of the GDP?
q.suppose that a banks customer deposits 4000 in her checking account. the required reserve ratio is 0.25. what are the
In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade.
Liberty Airways is considering an investment of $800,000 in ticket purchasing kiosks at selected airports. The kiosks have an expedited life of four years. Extra ticket sales are expected to be $60,000 per year at a discount price of $40 per ticket. ..
Explain the concept of more is better satisfied for both goods. Elucidate as C increases the MUC increase, decrease or remain constant.
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