New answers tagged

2

You should quote directly from the book you're citing, because I think you might be mis-reading it. At the Econ101 level, there are two important frames for thinking about fixed costs: one is that in the long run, the contribution of fixed costs to average cost falls to zero. You can see this in the standard textbook graph, which will typically look ...


1

Your question is ultimately one about information flow in networks under conditions of imperfect and incomplete information. I like your distinction between "easy" and "hard" to calculate - it's a good rubric for problem classification. I believe that work being done on complexity theory and information flows can help shed some light on how to think about ...


Top 50 recent answers are included