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Author Question: What does it mean if an industry has external diseconomies? What will be an ideal ... (Read 30 times)

stock

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on: Jun 29, 2018
What does it mean if an industry has external diseconomies?
 
  What will be an ideal response?

Question 2

The level of saving in Japan has historically been high relative to the level of domestic investment. Based on this information, we would expect that
 
  A) Japan's private saving is greater than its public saving.
  B) Japan's capital inflows are positive.
  C) Japan's net foreign investment has been relatively low.
  D) Japan's net exports have been relatively high.


CourtneyCNorton

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Reply #1 on: Jun 29, 2018
Answer to Question 1

There are external diseconomies in an industry if long-run average costs rise as the size of the industry increases.

Answer to Question 2

D


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