Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose a firm's production function can be specified as Q = 10KL .This firm's cost function exhibits a.economies of scale b.diseconomies of scale c.neither diseconomies

Suppose a firm's production function can be specified asQ = 10KL.This firm's cost function exhibits

a.economies of scale

b.diseconomies of scale

c.neither diseconomies nor economies of scale.

d.economies of scale for output levels less than some level,Q1= 1/4, and diseconomies of scale thereafter.

e.we cannot determine based on the given information

I know the answer is A but don't know why. Please explain, thx!

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

Step: 3

blur-text-image

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

Slavery And American Economic Development

Authors: Gavin Wright

1st Edition

0807152285, 9780807152287

More Books

Students also viewed these Economics questions