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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