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The cost function for gumballs is given by TC = q(2v+w), where q is the output of gumballs (in thousands), v is the hourly rental rate for gumball presses, and w is the hourly wage. What is the underlying production function and what sort of returns to scale does that production function have? Does the cost function show economies or diseconomies of scale? Show all work.

Microeconomics, Economics

  • Category:- Microeconomics
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