=+f. Suppose the government had employed a different policy that charges a per-acre rent of q but
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=+f. Suppose the government had employed a different policy that charges a per-acre rent of q but allowed companies to rent any number of acres between 0 and L. What do long-run average and marginal cost curves look like in that case? Would it ever be the case that a firm will rent fewer than L acres? (Hint: These curves should have a flat as well as an upward-sloping portion.)
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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