second derivatives and economies of scale

Given a cost equation C(x), explain why C"(x)< 0 is sufficient to ensure favorable economies of scale

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Originally Posted by cofitts

Given a cost equation C(x), explain why C"(x)< 0 is sufficient to ensure favorable economies of scale

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Because it is sufficient for C'(x) to be a decreasing function, and C''(x)<0 ensures this.

RonL