What is meant by increasing returns to scale?
What will be an ideal response?
Increasing returns to scale implies that an increase in the firm's scale of production leads to lower average costs per unit produced.
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Many developing countries make the government budget one of the primary tools of long-run industrial development, with the government owning and operating industries such as steel mills, airlines, and phone companies
Indicate whether the statement is true or false
Owners of a parking lot are deciding whether or not to add more parking spaces to the lot. The owners should increase parking spaces as long as:
a. LRMR=LRMC
b. LRMR>LRMC
c. LRMR
Utility is
a. easily measured because all people derive the same utility from consumption b. easily measured because it is an objective concept c. easily measured because it is a subjective concept d. hard to measure because it is a subjective concept e. hard to measure because it is an objective concept
If M = 9,000 . P = 6, and Y = 1,500, what is velocity?
a. 0.167. b. 1. c. 4. d. 36.