Homework answers / question archive / Do statements about "returns to scale" refer to the long run or the short run average cost curves? If returns to scale are increasing, what does this imply about the average cost? If entry of new firms lowers average cost of existing firms, what does this imply about returns to scale and external economies of scale? Joon's Microeconomic Advisors Inc

Do statements about "returns to scale" refer to the long run or the short run average cost curves? If returns to scale are increasing, what does this imply about the average cost? If entry of new firms lowers average cost of existing firms, what does this imply about returns to scale and external economies of scale? Joon's Microeconomic Advisors Inc

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Do statements about "returns to scale" refer to the long run or the short run average cost curves?

If returns to scale are increasing, what does this imply about the average cost?

If entry of new firms lowers average cost of existing firms, what does this imply about returns to scale and external economies of scale?

Joon's Microeconomic Advisors Inc. produces economic? consulting. They only input in producing economic is labor of economists who are paid $1000 per day. Assume that the marginal product of economists working for Joon, measured in pages of consulting reports per day, is given by the equation MPL=20−0.5LMPL=20−0.5L, where L is labor in days. If the price of a page of economic consulting is $400, Joon will hire _____ days of economic labor? Show your work.