If a firm produces an output x at a total cost of C=a² + bx, (a, b> 0) find in expression for ne , the elasticity of total cost. Show that ne is always greater than unity and increases as x increases.


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If a firm produces an output x at a total cost of C=a² + bx, (a, b> 0) find<br>in expression for ne , the elasticity of total cost. Show that ne is always greater than unity<br>and increases as x increases.<br>

Extracted text: If a firm produces an output x at a total cost of C=a² + bx, (a, b> 0) find in expression for ne , the elasticity of total cost. Show that ne is always greater than unity and increases as x increases.

Jun 08, 2022
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