If a firm has diminishing returns to labor over some range of output, it cannot have economies

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If a firm has diminishing returns to labor over some range of output, it cannot have economies of scale over that range. True or false? Explain briefly.

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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Question Posted: Dec 11, 2012 12:21 AM

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If a firm has diminishing returns to labor over some range of output, it cannot have economies

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False Diminishing returns to labor is a shortrun concept measured w...View the full answer

Macroeconomics Principles and Applications

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