What is Constant Returns to scale
What is Constant Returns to scale?
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Firms cannot keep increasing returns to scale indefinitely after the first stage; therefore, firm enters a stage while total output tends to increase at a rate that is equal to the rate of increase in inputs. Such stage comes in to operation while the economies of large scale production are neutralized through the diseconomies of huge scale operation.
When both supply and demand for a good reduce, this is certain that: (w) market price will rise. (x) equilibrium quantity will reduce. (y) quality of the good will decline. (z) level of consumer satisfaction will increase. I need a
Why is wealth definition of economics criticized?
Inefficiency may exist within a labor market while a firm only hires labor up to a certain point where: (w) the value of labor’s marginal product equals the wage rate. (x) VMP > MRC. (y) MPPL = w/P. (z) the last unit of labor adds as much to
Illustrates the fixed and variable inputs in economics?
The economic incidence of a tax: (i) identical to its legal incidence. (ii) either forward-shifted to suppliers or backward-shifted to consumers. (iii) imposed on whoever suffers decreased purchasing power because of the tax. (iv) more easily found th
State the causes for downward sloping of demand curve?
When the hourly wage rate for workers this purely competitive firm hires is approximately of $13, this will operate at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e. Q : Wage Flexibility An assumption An assumption regarding purely competitive labor markets to make sure market clearing is which: (w) firms maximize profit. (x) individuals and households maximize utility. (y) wages and prices are flexible. (z) trade unions engage in collective bargai
An assumption regarding purely competitive labor markets to make sure market clearing is which: (w) firms maximize profit. (x) individuals and households maximize utility. (y) wages and prices are flexible. (z) trade unions engage in collective bargai
What are the Environmental or external issues of managerial economics?
When the substitution effect of a wage raise dominates the income effect, in that case the: (1) labor supply curve will be "backward bending." (2) value of the marginal product will exceed the wage rate. (3) labor force participation
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