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 October 17, 2018, 1:30 am ad1c9bdddf
a firm should stop expanding output when marginal revenue = marginal cost.
b) Not always true.
Consider an economy of ...
Theory of diminishing returns
The law of diminishing returns and the business
How would you estimate additional dollar cost of adding sales people? How is the expected net revenue generated by adding an additional salesperson given a company's past sales experience? How would these cost and revenue estimates be used to determine whether a sales force increase is warranted? For example a company currently has 60 salespeople and wants to add another 5 to 10 more. Is there a specific equation?View Full Posting Details