Explain the three categories of returns to scale relating to the long-run average cost curve.

/in /by

Explain the three categories of returns to scale relating to the long-run average
cost curve.

You might also like
Evaluate whether it violated or justify WARP conditionality: A consumer makes the following choices (when you develop the matrix, show the calculation process for the first row) a. At prices (p1,p2)=($4,$4) the choice was (x1,x2) = (20,4). b. At (p1,p2)=($2,$2) the choice was (x1,x2) = (10,10). c. At (p1,p2)=($2,$4) the choice was (x1,x2) = (10,8).
Given that in an economy, , I, M S =300, M t = 0.4Y, and M z =125-200r where, Y= income, C= consumption, I= investment, M S = money supply, M t = transactional-precautionary money demand, M z = speculative money demand and r= interest rate. Calculate; i. The equilibrium level of income and interest rate in this economy. (2 marks) ii. The level of C, I, M t , and M z when the economy is in equilibrium (4 marks)
Briefly explain, by means of examples, the difference between a maximum price and a minimum price.
Which of the following is true of two firms in a duopoly market that are in a Nash equilibrium? Both firms are producing at a level that maximizes profits Both firms are producing at a level that minimizes average total costs Both firms are receiving the maximum payoff available in their payoff matrix Together the firms have chosen a level of supply equal to the level of aggregate demand Neither firm has an incentive to deviate from its strategy
At ORTIA different techniques can be used for capacity planning and control. If ORTIA decide to use the moving-average demand-forecasting technique, this will _____________. 1 be used to evaluate the effect of different capacity plans graphically 2 involve shifting the responsibility for quality from the operations-management function to the entire business 3 be based on the availability of actual demand data over preceding periods 4 involve upgrading or replacing technology when necessary
Assuming the income of the consumer to be constant, what will be the effect of a decline in price of both commodity X and commodity Y by the same proportion? Explain your answer with the help of graph(s).
The following data refers to the price of a good ‘P’ and the quantity of the good supplied, ‘S’. p 2 7 5 1 4 8 2 8 ___/_____________________________________ s / 15 41 32 9 24 43 17 40 a. Estimate the linear regression line b. Estimate the standard errors of c. Test the hypothesis that price influences supply
Elasticity of supply will decrease when?