1. True or False: explain why your answer is true or false a. We can expect the average cost curve of a software product downloadable in the internet to have no minimum point. b. Decreasing returns to scale implies that production exhibits economies of scale. c. Fixed costs tend to infinity when output is zero
1. True or False: explain why your answer is true or false a. We can expect the average cost curve of a software product downloadable in the internet to have no minimum point. b. Decreasing returns to scale implies that production exhibits economies of scale. c. Fixed costs tend to infinity when output is zero
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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1. True or False: explain why your answer is true or false
a. We can expect the average cost curve of a software product downloadable in the internet to have no minimum point.
b. Decreasing returns to scale implies that production exhibits economies of scale.
c. Fixed costs tend to infinity when output is zero
d. While the distance between the total and variable cost curves does not change, the distance between the
e. In general, production can display diminishing returns in all variables but still display increasing returns to scale. Explain your answer.
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