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Math Help - second derivatives and economies of scale

  1. #1
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    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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  2. #2
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    Quote Originally Posted by cofitts View Post
    Given a cost equation C(x), explain why C"(x)< 0 is sufficient to ensure favorable economies of scale
    Because it is sufficient for C'(x) to be a decreasing function, and C''(x)<0 ensures this.

    RonL
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