Purchase Solution

Average cost

Not what you're looking for?

Ask Custom Question

Average cost declines as output expands in a production process with:
a. constant returns to scale.
b. decreasing returns to scale.
c. decreasing returns to a factor input.
d. increasing returns to scale.

Purchase this Solution

Solution Summary

Average costs are briefly synthesized in the solution.

Solution Preview

d. increasing returns to scale.
Suppose we use two inputs X and Y. The cost of X is 100 and Y is 50. By ...

Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.