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Experiences economies of scale

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Question 1.

Provide an example about how people specializing in their areas of comparative advantage benefits you in your day-to-day life.

Question 2.

Generally speaking, marginal utility decreases as the number of units consumed increases. Can you think of a product where this decline in marginal utility is particularly sharp? Why is this?

Question 3.

The textbook describes how, over some range of output, economies of scale exist in the production of cars. Provide another example of an industry that experiences economies of scale? What factors lead to these economies of scale?

Reference no: EM133172943

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