dschool 2006

Posted by sharada on Jan 16, 2011; 1:47pm
URL: http://discussion-forum.276.s1.nabble.com/dschool-2006-tp5929155.html

hi guys

qn 13-suppose all input prices as well as output price double.the level of output produced by a firm which uses a decreasing returns to scale technology will
a)be double of its original level
b)increase,but not necessarily double
c)remain constant
d)change,but we cannot say in which direction

please explain as to why the answer is (c)-remains constant


In qn 29,we will get the following cost function right?
till q<=4,use technology 2
for q>4,use technology 1.
how to proceed after this?