When a small firm expands the scale of its operations

Assignment Help Macroeconomics
Reference no: EM13245766

When a small firm expands the scale of its operations, why does it usually first experience increasing returns to scale?When the same firm grows to be extremely large, why might a further expansion of the scale of operation generate decreasing returns to scale?

Reference no: EM13245766

Questions Cloud

Classify price floors and ceilings as type of market failure : Markets are a very good way to organize economic activity in our economy. Why do we classify price floors and ceilings as a type of market failure and why does the government need to get involved in these types of markets
What is the electric potential midway between two points : Two point charges, +3.75 µC and -6.05 µC, are separated by 1.21 m. What is the electric potential midway between them
Explain ph equivalence point in ml of the solution : For the titration of 87.95 mL of 0.1311 M NaOH with 1.2586 M HBr, find the pH equivalence point (ve) in mL of the solution within the receiving flask when 0 mL of HBr is added.
How fast can the truck be moving without the crate sliding : A crate of eggs is located in the middle of the flat bed of a pickup truck as the truck negotiates a curve in the flat road, how fast can the truck be moving without the crate sliding
When a small firm expands the scale of its operations : When a small firm expands the scale of its operations, why does it usually first experience increasing returns to scale When the same firm grows to be extremely large, why might a further expansion of the scale of operation generate decreasing ret..
How long does it take the car to stop : The wheels of an automobile are locked as it slides to a stop from an initial speed of 30.0 m/s, approximately how long does it take the car to stop
Determine the charge of the particle : A moving particle encounters an external electric field that decreases its kinetic energy from 8650 eV to 7540 eV as the particle, Determine the charge of the particle. Include the algebraic sign (+ or ?)
What government revenues are generated by the policy : Suppose that the world price for steel is below the U.S. domestic price, but the government requires that all steel used in the United States be domestically produced. a.Use a diagram like the one below to show the gains and losses from such a poli..
Compute the density and the molar mass of the gas : A 1.00 g sample of an unknown gas occupies 418 mL at 23.0 oC and 715 torr. Calculate the density at 23.0 oC and the molar mass of the gas.

Reviews

Write a Review

Macroeconomics Questions & Answers

  What is being bought and sold in each direction

According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one found in this chapter to represent the sector of the economy devoted to collage education.

  Devaluation was made after purchase additional investment

devaluation was comduct after the purchase and additional investment were completed, what is the new ROI.

  Determining merger of two rival firms on market power

When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased-Using your knowledge of game theory, what do you thank disrupted McDonald's plans?

  How to get advice from a classical and a keynesian economist

State the essential difference between the classical and Keynesian schools of thought. If you were a public policymaker and received conflicting advice from a classical and a Keynesian economist, how would you choose Explain.

  Find the equilibrium rate of return

Assume the market can be described through the following three sources of systematic risk with associated risk premiums.

  Illustrate what are the four supply factors of economics

Illustrate what are the four supply factors of economics growth. What is the efficiency factor? Please illustrate these factors in the terms of the production possibilities curve.

  The occurrence of the law of supply

The Law of Supply movement along the curve due to the price effect occurs because people can buy only so much of a product.

  Solving the utility function

Tom have only $60, and he want to spend it all on clothing (X) and food (Y), Price of clothing is $4. Find out the optimal values of both goods (Y*,X*) and Utility?

  Explain why do economists believe that the cpi

Explain why do economists believe that the CPI overstates the rate of inflation

  Ad as diagram and md ms diagram

Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate.   Use an upward-sloping, short-run supply curve in your analysis.

  Write down the tangency condition for type a and b agents

Consider the 2-period environment from class.The economy is populated by two types of agents A and B. There is an equalnumber (N) of each type. The agents have preferences which incorporate impatience.

  Explain what causes the high interest rates in the market

A number of companies exist that specialize in "payday loans." Payday loans are small loans often for a few hundred dollars or less that are made to low-income borrowers. Often these borrowers have poor credit histories and few assets and would ha..

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!

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