Re: Increasing returns to scale

Posted by Econenthusiast on Mar 20, 2018; 4:44pm
URL: http://discussion-forum.276.s1.nabble.com/Increasing-returns-to-scale-tp7608854p7608866.html

a can be ruled out on the grounds that with an IRS production fn, perfect competition results in losses as price is below average cost. Like you said c can be ruled out as well, I'm not sure about b. What is the correct answer that's given for the question ?