List three reasons why a firm might experience economies of scale
What will be an ideal response?
(1.) Standardized production techniques.
(2.) Inputs purchased in volume.
(3.) Inputs produced by the firm rather than purchased elsewhere.
(4.) Lower transportation costs when products are shipped in bulk.
Economics
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The marginal rate of technical substitution always equals
A) the slope of the total product curve. B) the ratio of the marginal products of inputs. C) the change in output due to a change in the amount of one input. D) the distance between two isoquants.
Economics
For this question, assume that expectations of productivity growth adjust slowly. Now, suppose that there is a 5% increase in productivity. Explain how this 5% increase in productivity can cause changes in the unemployment rate
What will be an ideal response?
Economics