The production function of a firm is f(x, y) = min{x, y}. This is a constant returns to scale production function. • True • False Please explain!
The production function of a firm is f(x, y) = min{x, y}. This is a constant returns to scale production function. • True • False Please explain!
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 27RQ: What is the difference between economies of scale, constant returns to scale, and diseconomies of...
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The production function of a firm is f(x, y) = min{x, y}. This is a constant returns
to scale production function.
• True
• False
Please explain!
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