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Explain Briefly the Following Concepts

question 240

Essay

Explain briefly the following concepts:
a.Increasing returns to scale
b.Decreasing returns to scale
c.Constant returns to scale


Definitions:

Arbitraging

The practice of buying and selling the same asset in different markets to take advantage of differing prices for the same asset.

Foreign Goods

Products or services that are produced outside one's own country and imported for domestic consumption.

Purchasing-power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of the currencies.

Currency

The system of money in general use in a particular country, used for buying and selling goods and services.

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