Which of the following are true (check all that apply) Note: IRTS=increasing returns to scale, CRTS=constant returns to scale, DRTS=decreasing returns to scale O if the production function exhibits IRTS, then the cost function will exhibit economies of scale O if the production function exhibits IRTS, then the cost function will exhibit diseconomies economies of scale O if the cost function exhibits diseconomies of scale, then the producing function exhibits DRTS O if the production function exhibits CRTS, then the cost function will exhibit constant economies of scale O if the production function exhibits DRTS then the cost function will exhibit diseconomies of scale

Which of the following are true (check all that apply) Note: IRTS=increasing returns to scale, CRTS=constant returns to scale, DRTS=decreasing returns to scale O if the production function exhibits IRTS, then the cost function will exhibit economies of scale O if the production function exhibits IRTS, then the cost function will exhibit diseconomies economies of scale O if the cost function exhibits diseconomies of scale, then the producing function exhibits DRTS O if the production function exhibits CRTS, then the cost function will exhibit constant economies of scale O if the production function exhibits DRTS then the cost function will exhibit diseconomies of scale

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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