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Q. Explain about Capacity Utilization?
Capacity Utilization: A company or economy's capacity represents maximum amount of output it can produce. Rate of capacity utilization, hence, represents proportion of capacity which is actually used in production. When capacity utilization is high (so that a facility is being used fully or near-fully), pressure grows for new investment to expand that capacity. Additionally, high capacity utilization tends to reduce the unit cost of production (Because capital assets are being used more efficiently and fully).
Problems relating to national income estimation: Changing prices of goods and services . Prices of goods and services do change from one period to another. This makes compari
using necessary and sufficient condition explain consumer surplus diagrammically and mathematically?
1. Implicit and explicit revenues minus implicit and explicit costs equals: A. accounting profit. B. economic profit. C. zero profit. D. implicit profit. 2. A business owner mak
Closesubstitute goods: The number of closesubstitute goods The more substitutes of good has and the more close the substitutes are, the more elastic the demand for the good. Fo
Which of the following industries do you think are likely to exhibit large economies of scale? Explain why in each case. a. House building b. Electricity generation c. Market ga
MRTS and Marginal Productivity The change in output from change in labor equals: The change in output from change in capital equals
Q. What is Formal Economy? Formal Economy:Sector of the economy that produces services and goods in return for monetary payment, and is fully integrated into the formal structu
how to calculate growth rate in closed economy
The minimum wage was increased in 1996 amid cries by various economists that it would cause unemployment. Critics shown that the last time the minimum wage went up the si
Securitization: A process in that financial relationships (like loans) are converted into financial securities or assets (like bonds) that can be bought and re-sold in securities m
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