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7. Suppose a firm has a production function f(21, 12) = In($1 + 12 + 1). What is scale efficiency for this technology? If r,
7. Suppose a firm has a production function f(21, 12) = In($1 + 12 + 1). What is scale efficiency for this technology? If r, is fixed at 1 unit at what level of output will short run cost be equal to long run cost? 8. If a firm has a production function which is characterized by decreasing returns to scale and there are fixed costs due to property taxes show that the average cost curve is 'U' shaped. At what level of output is average cost at its minimum
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