Examine The Three Consequences For Firms Operating In A Market Economy: Macroeconomics Homework, DCU, Ireland
| University | Dublin City University (DCU) |
| Subject | Macroeconomics |
Question 1 Please answer parts (a), (b) and (c)
(a) Examine the three consequences for firms operating in a market economy and three consequences for a firm operating in a centrally planned economy.
(b) Explain, using examples, what is meant by diseconomies of scale.
(c) Explain three ways that firms can reduce the effects of diseconomies of scale.
Question 2 Please answer parts (a), (b) and (c)
(a) Explain four factors that cause the demand curve to shift.
(b) Examine why an understanding of the price elasticity of demand and supply is useful for a business.
(c) Write a note on both of the following:
(i) Indifference curves
(ii) Decreasing marginal utility
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