Author Question: When there are external economies of scale in an industry A) firm costs decrease as individual ... (Read 166 times)

notis · **on:** Jun 30, 2018

When there are external economies of scale in an industry

A) firm costs decrease as individual firms expand output.
B) firm costs decrease as the industry expands in size.
C) firms will generally increase their size.
D) firms must be located in different regions.

Question 2

What economic problems persist in Latin America? How has this shaped recent policy in the region and why are changes particularly challenging?

What will be an ideal response?

fur · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

B

Answer to Question 2

The lack of material improvement for large numbers of the population has forced policy makers to try to find ways to develop a more inclusive economic system by creating opportunities for excluded groups. They are also trying to make the countries less prone to macroeconomic crises and to create greater flexibility by addressing some of the legal and institutional rigidities that may be affecting outcomes. A long history of exclusion has blocked economic opportunity for particular groups. It is politically difficult to address inequality because inevitably it involves increasing tax collections and redirecting expenditures toward groups and regions that tend to be among the least powerful and least influential. Policies that will help include increasing spending on rural infrastructure to connect isolated groups with the national economy, along with spending on education, health care and microcredit programs.