Determine whether the following statements are TRUE or FALSE. Explain your answer using graphs or examples. c. If a firm has a constant return to scale production function, then production capacity is limitless even in the short run. d. In relation to three types of return to scale, the long-run average U-shaped cost never exists.
Determine whether the following statements are TRUE or FALSE. Explain your answer using graphs or examples. c. If a firm has a constant return to scale production function, then production capacity is limitless even in the short run. d. In relation to three types of return to scale, the long-run average U-shaped cost never exists.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 21PAE
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Determine whether the following statements are TRUE or FALSE. Explain your answer using graphs or examples.
c. If a firm has a constant return to scale production function, then production capacity is limitless even in the short run.
d. In relation to three types of return to scale, the long-run average U-shaped cost never exists.
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