Which Is More Important-The Quantity of Inputs or the Productivity

question 29

Essay

Which is more important-the quantity of inputs or the productivity of inputs-as a source of economic growth in Canada? Explain.

Distinguish between the phases of economies of scale, constant returns to scale, and diseconomies of scale in the long-run.

Estimate the impact of input adjustment on long-run average total cost within different scales of production.

Assess real-world business decisions related to plant size, scale of operations, and their cost implications.

Explain how specialization within the firm contributes to economies of scale.

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including terms for interest payments and the return of principal.

Liquidity Risk

The risk arising from the difficulty of selling an asset without causing a significant movement in its price and losing value.

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A marketplace where securities, including stocks and bonds, are bought and sold by traders.

Dark Pools

Private financial forums or exchanges for trading securities, not accessible by the investing public, often utilized by large institutional investors to facilitate block trades without impacting the market with their large orders.