Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies? If so, explain how this could happen. If not, why not?
What will be an ideal response?
Yes. If the scale economies were external to the firm, then there is no reason why the firms may not be in perfect competition.
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Which department in a modern university would most likely advertise itself as a promoter of modern growth theory?
a. computer science b. accounting c. economics d. history
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