It costs a firm C(q) to produce q units of output. If C(q) = q° – q² what kind of returns to scale does this technology exhibit for q > 1/3? Decreasing returns to scale Increasing returns to scale Constant returns to scale
It costs a firm C(q) to produce q units of output. If C(q) = q° – q² what kind of returns to scale does this technology exhibit for q > 1/3? Decreasing returns to scale Increasing returns to scale Constant returns to scale
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 15SQ
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![It costs a firm C(a) to produce q units of output. If C(q) = q³ – q² what kind of returns to scale
does this technology exhibit for q>1/3?
Decreasing returns to scale
Increasing returns to scale
Constant returns to scale](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe47bbe03-65c8-43e1-ba3b-d670b3baa9c5%2Fa59fbef4-c670-4079-b042-319e4107012f%2Fuh76in_processed.png&w=3840&q=75)
Transcribed Image Text:It costs a firm C(a) to produce q units of output. If C(q) = q³ – q² what kind of returns to scale
does this technology exhibit for q>1/3?
Decreasing returns to scale
Increasing returns to scale
Constant returns to scale
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