Ans is B
Q=0.5L+0.2K
when Q(xL,xK)=0.5(xL)+0.2(xK)=xQ(L,K)
Since Firm experiences constant return to scale which leads average cost remains same
z Instructions Question 20 If Q = 0.5L +0.2K, what happens to average cost as the...
Question 20 If Q-0.5L +0.2K, what happens to average cost as the firm expands (produces more)? CAC increases CAC decreases CAC reaches its maximum CAC stays constant « Previous Saving. Sul ODD F4
If Q = 2LK2 , what happens to average cost as the firm expands (produces more)? AC reaches its maximum AC increases AC decreases AC stays constant
Question 20 1 pts If Q = 2L +3K2, what happens to average cost as the firm expands (produces more)? AC decreases AC is constant AC increases AC reaches its maximum - Previous Next →
A firm's learning curve, which shows the relationship between average cost and cumulative output (the sum of its output since the firm started producing), is AC = a + bn", where AC is its average cost; N is its cumulative output; and a, b, and r are constants. What is the firm's AC if r=0? If r= 0, then AC = a + b. (enter formula) If r= 0, what can you say about the firm's ability to learn by...
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