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Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of consumers, rather than have various competing firms suffer the fixed costs of a minimum efficient scale and have to share a customer base. There are various industries that are very capital intensive and need large initial investments to operate. These types of firms are frequently natural monopolies. Railroads, electric generating companies, and air lines needs tens of millions of dollars in fixed costs.
Does the curve represent if the risk is NOT taken and the line connecting two points on the curve represents if the risk IS taken?
what is le''chatliers principle?
discuss the law of variable proportion with the help of isoquants
Explain the factors influencing the value of PED and yED. PED and YED should be explained and then dealt with in terms of determinants. PED is dependent on availability/closene
the short run can be defined as any period of time
discuss the central economic problem facing survivor group
How does the production possibilietes curve relate to present day economics?
cars:0,2,4,6,8 tow truck:30,27,21,12,0
You are the final voter in a brand new start-up league, the Ultra Fun Foosball League (UFFL). The directors are looking to you to make the decisions on how many teams to place in a
Capital make large scale production and greater degree of specialization possible. Thus with capital accumulation the advantages of large scale production and specializations are o
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