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Economics Model Answers Six (view source)
Revision as of 21:10, February 16, 2017
, 21:10, February 16, 2017no edit summary
This suggestion is risky. We need to know more about the market demand. We need to know whether we have increasing, constant, or decreasing returns to scale. We need to know if Wal-Mart is going to move into our market! As in real life, the best answer is this: we need more information before deciding.
This suggestion is risky. We need to know more about the market demand. We need to know whether we have increasing, constant, or decreasing returns to scale. We need to know if Wal-Mart is going to move into our market! As in real life, the best answer is this: we need more information before deciding.
'''5. In an online encyclopedia such as [[Wikipedia]] or [[Conservapedia]], would you say that the marginal product of adding another contributor (editor) increases or decreases? What does that imply about the growth path of the project?'''
'''5. In an online encyclopedia such as [[Wikipedia®]] or [[Conservapedia]], would you say that the marginal product of adding another contributor (editor) increases or decreases? What does that imply about the growth path of the project?'''
The instructor's view is that marginal product increases with each additional editor, because they can cross-link to each other's articles, discuss ideas with each other, and enjoy the cite more. On Wikipedia, about 410,000 articles were created in the first 5 years, but in the last two years 1.3 million articles have been created. We don't know how many editors they have had but I would guess that marginal product of an additional editor is greater the bigger the project is.
The instructor's view is that marginal product increases with each additional editor, because they can cross-link to each other's articles, discuss ideas with each other, and enjoy the cite more. On Wikipedia, about 410,000 articles were created in the first 5 years, but in the last two years 1.3 million articles have been created. We don't know how many editors they have had but I would guess that marginal product of an additional editor is greater the bigger the project is.