🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION β†’
Log in
Economics
1
answer
0
watching
62
views

The demand for a factor of production will always be greater in an industry with production technology that is constant returns to scale than if the industry is characterized by decreasing returns to scale. Is this statement correct?

Watch
1
answer
0
watching
62
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Avatar image
Read by 1 person

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

If output more than doubles when all inputs are​ doubled, production is governed by:

A) increasing returns to scale.
B) imperfect competition.
C) intra-industry equilibrium.
D) constant returns to scale
E) decreasing returns to scale.

If output more than doubles when all inputs are doubled, production is said to occur in conditions of:
Β 
A) increasing returns to scale.
B) imperfect competition.
C) intra-industry equilibrium.
D) constant returns to scale
E) decreasing returns to scale.

True, false or uncertain? Justify your response to the following statements.

Suppose that economic base of The City is experiencing a change in technology. Suppose that the dominant local industry, which produces something needed by all other local industries, used to display increasing returns to scale. The new technology reduces the average cost of production (given the current level of production) and displays constant returns to scale.

a) Would this change in technology affect the equilibrium size of the city?

b) Would the profit earned by local companies in other industries in equilibrium increase, decrease or stay the same because of the change in technology in the dominant industry?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in