Explicidate a profit-maximizing bundle will not exist

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Q. Show that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale as long as there is some point that yields a positive profit.

Q. Illustrate the effect of capital formation by comparing the prodution possibility curves,at the present time at the prsent time and ten years in the future,for two economies,one with a high rate and the other with a low rate of capital formation.

Reference no: EM1352504

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