In what ways do large businesses have advantages over small
Problem: In what ways do large businesses have advantages over smaller businesses in establishing their own level of equilibrium? Give some specific examples of how these advantages would affect equilibrium.
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Draw the PPF for the Billy + Sally economy as a whole (like in question below). Put cake on the horizontal axis and donuts on the vertical axis.
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In what ways do large businesses have advantages over smaller businesses in establishing their own level of equilibrium?
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draw Rachel's budget constraints before and after subsidy program. Also include an indifference curve and coordinates of Rachel's optimal bundle with subsidy.
Discuss any steps you have taken to overcome or solve the problem. If you have not overcome the barrier, what steps might you take to resolve it?
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