2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of output. The easi- est way to understand this is to look at whether long-run average cost decreases with output (economies of scale) or whether long-run average cost increases with output (diseconomies of scale). If average cost is constant as out- put rises, there are constant returns to scale. But the con- cept of falling unit costs is all around us. Explain how the concept of economies of scale helps shed light on each of the following: a. building construction b. cloud services providers c. e-invoice versus printed invoice d. a retired couple downsizing from a 4,000 sq. ft. house to a 2,000 sq. ft. apartment LI

which technology change affect consumer taste

how was EVwSample info calculated for this problem?

What benefits are their in operating a business to consumer online business model for consumers and the owner?

What is the relevance of a website for a business ? Discuss it with various departmental factors.

Why do people share content via social media channels? They find it interesting and/or entertaining. They think it can be helpful to others. They want to get a laugh. A & B Only. All of these.

Should the government become more involved in the regulation of the Internet? Why or why not?

What are the ethical issues that could be encountered when running an e-commerce platform?

How does the Internet help companies gain customer input on their existing and new products?

Question 3 A certain household comprises of a couple, Adam (A) and Betty (B). They have lexicographic preferences over two goods G1 and G2 - A wants to consume as much of G1 as possible, before moving on to G2 whereas, for B, it is the opposite, she wants to consume as much of G2 as possible before moving on to G1.¹ Given their varying preferences, they decide to shop separately, after dividing the household income equally. The household income is $8. One difference to the usual setting - there are government restrictions in place so that no individual is allowed to buy more than two units of either good. Hint: Do not use mathematical brute force (like Calculus) to solve this problem. A simple diagram with appropriate budget lines, etc. should suffice. 1) Suppose prices are p= (P₁, P2) = (1,2). Denote the optimal choice of A and B as a= b= (b₁,b₂) respectively. Solve for a and b. (a1, a2) and