Fixed cost efficiency with infinitesimal competitors

Linus Wilson

Applied Economics Letters, 2010, vol. 17, issue 7, 667-671

Abstract: Suppose that infinitesimal firms have identical variable costs, but there is heterogeneity in their fixed costs. Regardless of the ordering of entry and exit, fixed costs will be minimized for a given industry size.

Date: 2010
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DOI: 10.1080/13504850802297921

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