Range of production characterized by scale of economies

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Reference no: EM1312286

Q1. Let the cost function be C= 100 + 4q+ 4q(2).
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies? At Illustrate what production level are scale economies exhausted?"

Q2. In the model of a dominant firm, Suppose that the fringe supply curve is given by Q = -1 + 0.2p, where P is marketplace price also Q is output. Demand is given by Q = 11-p. Illustrate what will price also output be if there is no dominant firm?

Reference no: EM1312286

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