Examlex

Solved

To What Extent Is It Possible to Achieve Sustained Economic

question 157

Essay

To what extent is it possible to achieve sustained economic growth by replicating what has already been done (in terms of,for example,building more roads,factories,and office buildings)? Explain by referring to the concepts of diminishing returns and steady state.


Definitions:

Marginal Revenue

The change in a firm’s total revenue that results from the production and sale of one additional unit of output.

Cost Conditions

The factors that determine the expenses involved in production, including material, labor, and overhead costs.

Profit-Maximizing

The process or strategy aimed at achieving the highest possible profit from a business operation, by adjusting to optimal production levels and pricing strategies.

Market Price

Market price is the current price at which a good or service can be bought or sold, determined by the intersection of supply and demand in a market.

Related Questions