Micro

1. dcsvgeerhnIt is the annual flow of net income generated by an investment expressed 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 proceeds versus medium product Marginal product is the additional write down that canful be produced by hiring one more social unit of a item foreplay, holding all other excitant quantities constant 4. Short pro big is the period where the regular is operating under a obstinate ordered series (fixed factors) of achievement; and, new degenerates can neither take part nor wall socket an industry.mm Long course is the period for which there be no fixed factors of production. Hence firms increase or cliff the subdue of their operations. New firms can enter and existing firms can departure the industry The difference between the short run and vast run is the difference between day-to-day oper ations and persistent term strategic planning. 5. Increasing returns to scale means that a given percentage increased in the production of kit 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, close to result from sheer size (buying in volume for demean prices) Constant returns to scales means that the quantitative relationship between i nput and output stays constant Decreasing! 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 setting: 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 move a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper