Is it true the statement that if average production cost is increasing, a firm’s technology exhibits the decreasing return to scale. (If yes, show the proof. If not, show a counter example)
Is it true the statement that if average production cost is increasing, a firm’s technology exhibits the decreasing return to scale. (If yes, show the proof. If not, show a counter example)
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 7SQP
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- Is it true the statement that if average production cost is increasing, a firm’s technology exhibits the decreasing return to scale. (If yes, show the proof. If not, show a counter example)
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