Returns to scale and average costs: A simple and generalized proof

Philipp Weinschenk

Economics Letters, 2022, vol. 221, issue C

Abstract: We provide a simple and generalized proof for the result that increasing [decreasing] returns to scale imply decreasing [increasing] average costs and that constant returns to scale imply constant average costs.

Keywords: Returns to scale; Average costs (search for similar items in EconPapers)
JEL-codes: D20 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:221:y:2022:i:c:s0165176522003834

DOI: 10.1016/j.econlet.2022.110909

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