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What are Harrod-Domar assumptions?
The H-D (Harrod-Domar) model assumes as:
• Fixed capital output ratio. Nonetheless, diminishing marginal returns to capital element exist therefore each successive unit of investment is less productive and the capital to output ratio increases.
• Fixed savings ratio
• A closed economy. Within open economy, extra incomes may be utilized to buy imports as well as not saved.
definition, advantages and disadvantages of privatisation?
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Assume the firms cost function is: C(Q)= 100+10Q+Q^2 , Determine whether this industry is a natural monopoly when the demand function is: 1) D(P)= 100-3P 2) D(P)= 90-3P 3) D(P)= 10
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