Answer to Question #100922 in Microeconomics for Usman Tariq

Question #100922
Assume that there are increasing returns to scale; when the production is increased, the long-run average cost is? The demand for a product is said to be price elastic when? For a price inelastic good, when the price increases, this means?
1
Expert's answer
2020-01-03T09:29:54-0500
  1. When production grows in conditions of increasing returns to scale, the long-run average cost will reduce providing increase of income.
  2. The demand for a product is price elastic if growth of product price causes great decrease of sales.
  3. For a price inelastic good the volume of consuming remains unchanged when the price increases.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS