Question
A purely competitive firm's production function f(x 1 ,x 2 ) has increasing returns to scale.The prices of inputs are w 1 and w 1
A purely competitive firm's production function f(x1,x2) has increasing returns to scale.The prices of inputs are w1and w1and are constant.Can we have MC(q)>AC(q) for some production q, where MC and AC are the long run marginal and average cost functions of the firm?
a.
No
b.
Not enough information to answer question
c.
Yes
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The Americans An Economic Record An Economic Record
Authors: Stanley Lebergott
1st Edition
0393953114, 9780393953114
