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Short-run - short-answer


Question 1

What is productivity and how is it affected by changes in the prices of factors of production?

Question 2

Explain the law of diminishing returns.

Question 3

All other things being equal, how would a firm decide what factors of production to use in its factory?

Question 4

Explain the term 'short-run'.

Question 5

Distinguish between diseconomies of scale and the law of diminishing returns.