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Determinants of Short Run Cost
- The relationship among the production function and cost can be exemplified by either increasing returns and cost or decreasing returns and cost.
- Increasing returns and cost
- Decreasing returns and cost
For Example: Assume that the wage rate (w) is fixed relative to number of workers hired.
Then: In conclusion:
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Volumes (mL) of Solution 0.20M 0.20M 0.010M 2% 0.20M 0.20M NaI NaCl Na2S2O3 Starch K2SO4 K2S2O8 ?2ml 2ml 2ml 1ml 2ml 2ml ?2ml 2ml 2ml 1ml 0ml 2ml ?4ml 0ml 2ml 1ml 2ml 2ml Time Exp
identify which curve (demand or supply) will be affected?
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