This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is it that if an industry is operating under conditions of internal scale economies then the ... (Read 64 times)

vicky

  • Hero Member
  • *****
  • Posts: 586
on: Jun 30, 2018
Why is it that if an industry is operating under conditions of internal scale economies then the resultant equilibrium cannot be consistent with the pure competition model?
 
  What will be an ideal response?

Question 2

With fixed exchange rates, an increase in the foreign inflation rate, with constant income and domestic credit, will lead to
 
  A) a change in the exchange rate.
  B) an increase in international reserves.
  C) a decrease in international reserves.
  D) no change in international reserves.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Liamb2179

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jun 30, 2018
Answer to Question 1

Because once one firm will becomes bigger than another, or if one firm began the industry, then no other firm will be able to match its per unit cost, so that they would be driven out of the industry. The firm would become a natural monopoly.

Answer to Question 2

B


vicky

  • Member
  • Posts: 586
Reply 2 on: Jun 30, 2018
Wow, this really help

connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Life-cycle of the Sun; sizes are not drawn to scale. Life-cycle of the Sun; sizes are not drawn to scale.
Internal oblique Internal oblique
Glascow Coma Scale Glascow Coma Scale
Common skin signs are often evidence of an illness or disorder. A scale is a thin, dry flake of ... Common skin signs are often evidence of an illness or disorder. A scale is a thin, dry flake of ...
Post-Communist Economies Post-Communist Economies
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
Video: Type of Cell Junctions - Desmosome, Hemidesmosomes and Gap Junctions

For a complete list of videos, visit our video library