Refer to the scenario above. What is the payoff to Firm A in equilibrium?

What happens in the steady state to the capital—labor ratio, output per worker, and consumption per worker when each of the following events occur? You should assume that the steady-state capital—labor ratio is below the Golden Rule level

(a) Productivity falls. (b) Population growth falls. (c) The saving rate falls. (d) The depreciation rate falls.

Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firms in an industry?

What will be an ideal response?