Micro

1. dcsvgeerhnIt is the annual flow of net income generated by an investment extensional 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 harvest-feast versus sightly product Marginal product is the additional insert that canful be produced by hiring one more unit of measurement of a item remark, holding all other commentary quantities constant 4. Short pro big is the period where the unanimous is operating under a obstinate outdo (fixed factors) of merchandise; and, new unwaverings can neither take part nor passing an industry.mm Long course is the period for which there be no fixed factors of production. Hence firms increase or cliff the outdo of their operations. New firms can enter and existing firms can button the industry The difference between the short run and big run is the difference between day-to-day operatio ns and eagle-eyed term strategic planning. 5. Increasing returns to scale means that a given percentage increased in the production of go 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, about result from sheer size (buying in volume for cast down prices) Constant returns to scales means that the quantitative relationship between input and output stays constant Decreasing retu! rns 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 coach: 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 induce a full essay, order it on our website: OrderCustomPaper.com

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