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Industry economic characteristics

There are approximately 6,000 public companies in the United States (Israel, 2020). A firm is considered to be public if its securities trade on public markets. Select two public companies from the same industry that trade on the New York Stock Exchange (NYSE) or the...

A cost-minimizing firm

            If a unit of capital or labor becomes relatively cheaper, then a cost-minimizing firm will substitute toward the newly cheaper factor of production. Can you think of an example where this occurred in...

Increasing or decreasing returns to scale

          Roughly speaking, a firm has increasing returns to scale if doubling all inputs leads to output increasing by more than a factor of two. Decreasing returns to scale is when doubling all of a firm’s inputs, while likely increasing output, increases...

The factors that contribute to economic growth.

          This week, we want to examine in greater detail the factors that contribute to economic growth. Economic growth is measured by growth in Real GDP, but many factors contribute to that. Among the generally recognized factors that contribute to economic growth...
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