Find out a few relatively large firms or many small firms

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Q. In an industry where there are increasing returns to scale over wide ranges of output, would you expect to find a few relatively large firms or many relatively small company? Why?

Q. Assume an economy has GDP of $700 million, Taxes are $210 million, and there are no transfer payments. The government is running a surplus of $60 million and Investment is $100 million. Elicidate the Consumption and Government Spending equal to what?

Reference no: EM1345364

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