=+a. In the absence of fixed costs, you should have derived in exercise 13.2 that the long-run

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=+a. In the absence of fixed costs, you should have derived in exercise 13.2 that the long-run cost function for this technology is given by C1w, r, x2 5 1a 1 b2 a w

a r

b x

Aa ab b

b 1/1a1b2

. (13.43)

If the firm has long-run fixed costs F, what is its long-run average cost function? Is the average cost curve U-shaped?

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Microeconomics An Intuitive Approach With Calculus

ISBN: 9781337335652,9781337027632

2nd Edition

Authors: Thomas Nechyba

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Question Posted: Nov 04, 2024 09:00 AM

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=+a. In the absence of fixed costs, you should have derived in exercise 13.2 that the long-run cost function for this technology is given by C1w, r, x2 5 1a 1 b2 a w a r b x Aa ab b b 1/1a1b2 ....
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=+a. In the absence of fixed costs, you should have derived in exercise 13.2 that the long-run

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