Question: Assume the production function f(x1,... ,xn) has constant returns to scale. For fix input prices w = (w1 , . . . , wn ),
Assume the production function f(x1,... ,xn) has constant returns to scale. For fix input prices w = (w1 , . . . , wn ), argue that the total cost functions satisfies C(q) = A q, where A is a constant that depends on w
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
