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Economist Bonface
on Dec 01, 2024

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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.
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Tammy AustinDec 07, 2024
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