An expansion path shows

a. the returns to scale at each level of output.

b. the least-cost combination of inputs for each level of output.

c. the level of sales necessary for a firm if it wants to expand.

d. the level of long-run average cost at different scales of

Question

Business

Sherlyn Frank

29 May, 04:46

An expansion path shows

a. the returns to scale at each level of output.

b. the least-cost combination of inputs for each level of output.

c. the level of sales necessary for a firm if it wants to expand.

d. the level of long-run average cost at different scales of

+3

Answers (1)

Know the Answer?

Anabella Vasquez · Answer 1

b. the least-cost combination of inputs for each level of output.

Explanation:

The firm's expansion paths show the least combined inputs for each set of the outputs. Here the tow inputs like the labor and the physical capital are plotted on the graph and an optimal input combines the scale of production expands along the paths.

An expansion path showsa. the returns to scale at each level of output.b. the least-cost combination of inputs for each level of output.c. the level of sales necessary for a firm if it wants to expand.d. the level of long-run average cost at different scales of

An expansion path shows

a. the returns to scale at each level of output.

b. the least-cost combination of inputs for each level of output.

c. the level of sales necessary for a firm if it wants to expand.

d. the level of long-run average cost at different scales of