Indicate whether each of the following statements is true or false and give the reason. (a) A firm should stop expanding output after reaching diminishing returns and (b) if large and small firms operate in the same industry, we must have constant returns to scale.© BrainMass Inc. brainmass.com June 18, 2018, 3:37 pm ad1c9bdddf
a firm should stop expanding output when marginal revenue = marginal cost.
b) Not always true.
Consider an economy of ...
Theory of diminishing returns