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What is a SITUATION in which this might happen in a business? I don't want a numerical solution. Rather, I want to know what instance might occur that would cause constant returns to scale.
Example response: For decr returns to scale, if a firm hires double the amount of managers and also doubles all other input, the managers may not be able to manage their tasks at hand because of how difficult the company has become to handle. Therefore output will be less.
Explain how should she reallocate her expenditures among the two goods.
The following show data on investment rates and output per worker for two pairs of countries. For each country pair, calculate the ratio of GDP per worker in steady state that is predicted by the Solow model, assuming that all countries have the s..
Explain the purpose of rent control and the intended effect on consumers and suppliers of rental property. Does rent control achieve its purpose Using the Internet or the Virtual Library, give some detail regarding real-world experiments in rent cont..
Explain how the concepts of total utility, marginal utility, and utility maximization.
In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
Illustrate the impact do natural resources have on economic growth. Will it be possible for a country with few natural resources to grow rapidly.
What is the process to go about maximizing social welfare?
Two firms compete in a market to sell a homogeneous product with inverse demand function P = 400 -2Q. Each firm produces at a constant marginal cost of $50 and has no fixed cost. Use this information to compare the output levels and profits in set..
Discuss market trends that the organization will face. Explain your conclusions. Address how each of the following will change or will not change.
Explain the sense in which the Fed is independent of the federal government. How independent is the Fed in reality? What is your opinion about the importance of the Fed"s independence for the U.S. economy?
Assume a $1,000 par-value bond was issued last year with a promised yearly rate of return (yield) of 6% when market interest rates on comparable securities were also 6%.
How is the american auto industry an oligopoly? 2-3 page paper about this .and how the companies differentiate from one another but yet still initially sell the same products: cars.
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