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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).
Critique on Earmarking Studying the working of earmarking in many OECD (organisation of economic cooperation and development) countries, Potter and Diamond (1999) pointed out
x-3y+6z=1 2x-5y+10z=0 3x-8y+17z=1
In theory, we know that a monopolist basis its price directly off of the demand curve, but in practice a monopolist cannot ''see'' the demand curve. Explain how a monopolist might
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Inflation-Unemployment Trade-off under Rational Expectations : Robert Lucas (1972) pointed out another implication of the above hypothesis of adaptive expectations. Suppose in
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