Apu Leases 2 Squishy Machines to Produce 40 Squishies in the Short

question 92

Essay

Apu leases 2 squishy machines to produce 40 squishies in the short run.Apu's short-run cost function is: where q is the number of squishies produced and K is the number of squishy machines used.Apu's long-run cost function is: If Apu decides to lease 7 squishy machines,what happens to Apu's short-run average total cost of producing 40 squishies? Does Apu's long-run cost function exhibit increasing,constant,or decreasing returns to scale?

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Definitions:

Public Acts

Laws or legislative decisions that are passed by government and apply to the public as a whole.

Preemptive Power

The authority to act before others to prevent an undesirable outcome, often used in legal or military contexts to describe preemptive measures or actions.

Necessary

Something essential or required for a particular purpose or outcome, often in the context of achieving goals or fulfilling conditions.

Proper Clause

The clause in the U.S. Constitution granting Congress the power to make all laws which shall be necessary and proper for carrying into execution its powers.