Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. Suppose a firm has a production function f(21, 12) = In($1 + 12 + 1). What is scale efficiency for this technology? If r,

image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Michael Parkin

12th edition

133872297, 133872293, 978-1292094632

More Books

Students also viewed these Economics questions