User Account

All Pages

Define the concepts of constant returns to scale

Assignment Help Macroeconomics
Reference no: EM132655608

1. Define the concepts of constant returns to scale (CRS).

2. Why is it sensible to assume that the production function exhibits constant returns to scale? Can you give a reallife example?

3. Explain the concept of diminishing marginal returns to capital. Why does it make economic sense to assume that the production function exhibits diminishing marginal returns to capital?

Reference no: EM132655608

Questions Cloud

When is a country gni higher than its gdp : 1. In a given year, a country's GDP in terms of the country's own dollars is $235 billion.
Calculate the opportunity cost of producing jeans : Imagine that you just paid $50 for a new pair of jeans. According to the circular flow diagram, what decisions were made concerning the jeans you purchased
What did roberto the customer service representative : What did Roberto, the customer service representative, do correctly? What What could he have done better? What could the customer have done
What is the effect on Belinda gross income : The cost of the services provided to her was $18,000 ($300 per day). What is the effect on Belinda gross income
Define the concepts of constant returns to scale : Why is it sensible to assume that the production function exhibits constant returns to scale? Can you give a reallife example?
What year was activity based costing first introduced : What year was Activity Based Costing first introduced? What was the occasion or publication? Briefly explain the background of each founder
What are the cost considerations to the employer : Mauve Corporation has a group hospitalization insurance plan that has a $200 deductible amount for hospital visits. What are the cost considerations to employer
Complete strategic plan : In order to complete your strategic plan, select the methods you will use to evaluate how your strategic goal is being met.
What do you predict will happen to the foreign exchange rate : The exchange rate is the price of one currency in another. For example, it may take US $1.35 to buy 1 British Pound.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd