Asked by
Economist Bonface
on Dec 01, 2024Verified
If some firm in an industry has the production function F(x, y)= x3/4 y3/4, where x and y are the only two inputs in producing the good, then that industry cannot be competitive in the long run.
Production Function
A mathematical model that describes the relationship between the quantities of productive inputs used and the amount of output produced.
Competitive Industry
A market scenario where multiple firms produce similar products, leading to high levels of competition.
- Learn about the contribution of cost structures and production functions to the supply dynamics of firms and industries in competitive market conditions.
Verified Answer
TA
Learning Objectives
- Learn about the contribution of cost structures and production functions to the supply dynamics of firms and industries in competitive market conditions.