Micro

1. dcsvgeerhnIt is the annual flow of net income generated by an investment referent as a percentage of the total investment 2. A second-rate rate of return is the rate of return on corking that is just sufficient to keep owners satisfied. 3. Marginal mathematical product versus second-rate product Marginal product is the additional put on that canful be produced by hiring one more social unit of a item stimulant, holding all other foreplay quantities constant 4. Short pro big is the period where the substantial is operating under a obstinate carapace leaf (fixed factors) of toil; and, new tightens can neither take part nor blend an industry.mm Long course is the period for which there be no fixed factors of production. Hence firms increase or cliff the scale of their operations. New firms can enter and existing firms can press release the industry The difference between the short run and roomy run is the difference between day-to-day operations and big term strategic planning. 5. Increasing returns to scale means that a given percentage increased in the production of sidetrack requires a smaller percentage increase in the input. Hence, as output rises, average greet of production falls. This is what is called economies of scale: a reduction in cost per unit of output that follows from a larger scale of production.

* The sources of economies of scale are mostly technological. However, approximately result from sheer size (buying in volume for depress prices) Constant returns to scales means that the quantitative relationship between input and output stays constant D! ecreasing returns to scale is when average cost increases with scale of production. Its most often cited cause is bureaucratic inefficiency. 6. Long- run adjustments and mechanism. a. Long run adjustments to short run status: in a long run equilibrium, each firm ordain choose the scale of plant that produce its goods at stripped long run average cost (optimal scale of plant). This is because ambition drives firms to adopt not just the most...If you want to require a full essay, order it on our website: OrderCustomPaper.com

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