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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 3
Draw the long-run total cost and long-run average cost curves for a firm that experiences:
a. Constant returns to scale over all output levels.
b. Diseconomies of scale over low levels of output,constant returns to scale over intermediate levels of output,and economies of scale over high output levels. Does this pattern of costs make sense? Why or why not?
a. Constant returns to scale over all output levels.
b. Diseconomies of scale over low levels of output,constant returns to scale over intermediate levels of output,and economies of scale over high output levels. Does this pattern of costs make sense? Why or why not?
Explanation
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a)When there are constant returns to sca...
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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