Solved: Is this technology characterized by economies of scale what, Macroeconomics

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Is this technology characterized by economies of scale what

2. Suppose that the cost function for both the entrant and an incumbent is

C(q) = f + cq.

(a) Is this technology characterized by economies of scale? What is marginal cost and how does it compare to average cost?

(b) Suppose that postentry the incumbent can commit to charge p = c.Will there be entry?

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Macroeconomics: Is this technology characterized by economies of scale what

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Is this technology characterized by economies of scale what

Reference No:- TGS0665619

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Solution Preview :

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Macroeconomics: Is this technology characterized by economies of scale what

Reference No:- TGS0665619

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