Question
The Q & H company produces toothpaste and its cost function is C(Q)=4+Q 2 -2Q. Calculate the value of S (S=AC/MC, the measure of economies
The Q & H company produces toothpaste and its cost function is C(Q)=4+Q2-2Q. Calculate the value of S (S=AC/MC, the measure of economies of scale). Discuss whether the production exhibit economies of scale (increasing returns to scale) or diseconomies of scale.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
