Explain why perfect competition is not compatible with firms having increasing returns to scale production (IRS) technologies (Hint: draw the demand curve, declining AC and constant MC and analyze profit maximization of perfectly competitive firm)
Explain why perfect competition is not compatible with firms having increasing returns to scale production (IRS) technologies (Hint: draw the demand curve, declining AC and constant MC and analyze profit maximization of perfectly competitive firm)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 17RQ: Briefly explain the reason for the shape of a marginal revenue curve for a perfectly competitive...
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Explain why perfect competition is not compatible with firms having increasing returns to scale production (IRS) technologies (Hint: draw the demand curve, declining AC and constant MC and analyze profit maximization of
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