=+b. Suppose that the patented technology is sufficiently advanced such that, for any set of input prices,
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=+b. Suppose that the patented technology is sufficiently advanced such that, for any set of input prices, there always exists an output level x at which it is (long-run) cost effective to switch to this technology. On a graph with output x on the horizontal and dollars on the vertical, illustrate two cost curves corresponding to the two technologies and then locate x. Then illustrate the cost curve that takes into account that a firm will switch to the patented technology at x.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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