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A Firm's Long-Run Total Cost Function Is Given by LTC

question 42

Essay

A firm's long-run total cost function is given by LTC = 115,000Q - 500Q2 + Q3, where long-run marginal cost is given by LMC = 115,000 - 1,000Q + 3Q2. At what range of output does this firm have economies of scale?


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