Explain How the Distinction Between Positive and Normative Economics Provides

question 102

Essay

Explain how the distinction between positive and normative economics provides insight as to why economists do disagree.

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Definitions:

Advertising Dollars

The amount of funding allocated to promotional activities in order to increase product or service visibility.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing as scale is increased.

Value Chains

The full range of activities that businesses go through to bring a product or service from conception to delivery to the end user.

Economies of Scope

Cost advantages that a business obtains due to a broader range of operations or production levels.