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Benefits:

Economics of scale- shown on graph (movement to lower part of LRAC curve) can potentially pass on cost savings

Profitability

shared resources

High tax revenue for the...

A business may grow and experience lower average costs. This is due to economies of scale, which indicates that rising output results in lower costs. There are many types of economies of scale and it is i...

Let us assume a country with a fixed exchange rate such as Hong Kong. As devaluation only works when there is a fixed exchange rate, which is not governed solely by market forces (S&D). This allows fo...

Short run economic growth is known as Aggregate demand, otherwise known as GDP. Long run economic growth is known as Aggregate supply, otherwise known as real GDP. Government spending is a compenent of th...

The first thing to do is define aggregate demand and interest rates. The interest rate is the cost of borrowing and the benefit of saving—the extra money (expressed as a percentage) to be paid back on top...