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Why Is It That If an Industry Is Operating Under

question 10

Essay

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?


Definitions:

Rate of Return

The earnings or losses accrued from an investment over a predetermined period, measured as a fraction of the investment's buying price.

Interest Rate

The interest rate is the percentage charged on the total amount borrowed or invested, representing the cost of borrowing or the earning from an investment over a specified period.

Loan

A financial amount given as a loan, anticipated to be returned with interest.

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, represented as a percent of the investment's original price.

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