Question: Explain why economies of scale constant returns to scale and
Explain why economies of scale, constant returns to scale, and diseconomies of scale occur.
Answer to relevant QuestionsWhy is the long-run average total cost curve described as an envelope curve? What is it enveloping? Describe the major fixed-costs and variable costs associated with each of the following: a. grass cutting b. making pizza c. bus transportation d. babysitting e. making automobiles f. heart transplants g. hotel ...(a) What is the relationship between price and marginal revenue? Construct a table and graph to illustrate. (b) If the price curve is horizontal, P = MR. Explain. What is the firm's total profit? Why does the government issue patents?
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