Strictly convex variable cost does not imply U-shaped average cost
| Autor: | Antonio Tesoriere, Luigi Balletta |
|---|---|
| Přispěvatelé: | Balletta, Luigi, Tesoriere, Antonio, Balletta, L., Tesoriere, A. |
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Marginal cost
Economics and Econometrics Average fixed cost Total cost 05 social sciences Endogenous entry Settore SECS-P/06 - Economia Applicata Variable cost Microeconomics U-shaped average cost Convex cost 0502 economics and business Econometrics Economics Fixed cost Market power 050207 economics Settore SECS-P/01 - Economia Politica Average cost 050205 econometrics Minimum efficient scale |
| Popis: | We show that strictly convex variable costs do not imply U-shaped average costs and provide a sufficient condition for U-shaped average costs. As an application we study endogenous entry when firms have market power and they have decreasing average cost but increasing marginal cost. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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