Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 4.10P
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1. Evaluate the view that the main goal of firms will always be cost minimization.
2. You are interested in starting a used car dealership in your country. Provide examples with explanations of implicit cost and sunk costs related to this business.
3. Suppose you are a producer of motor vehicles, explain with the use of examples the difference between the following concepts: diseconomies of scale and constant returns to scale.
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