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Assume That Firms a and B Have the Same Minimum

question 35

Essay

Assume that firms A and B have the same minimum efficient scale of operation and,at current production levels,both firms are incurring the same average costs of production.However,firm A's output is 5 times larger than firm B's output.How is this possible?


Definitions:

Distributive Justice

the ethical principle concerned with the fair allocation of resources and wealth among members of a society.

Social Egalitarianism

A philosophy advocating for equal rights and opportunities for all people within society.

Libertarianism

A political philosophy that emphasizes freedom, autonomy, and voluntary association, with a scepticism of authority and state power.

Kohlberg's Schematic Analysis

A psychological framework developed by Lawrence Kohlberg that categorizes moral development into stages, used to analyze the moral reasoning behind decisions and behaviors.

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