1. ECON3
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The Theory of Production
Long Run Production
Answer all the questions below
1. Explain the following terms
a. Increasing Returns to Scale
b. Decreasing Returns to Scale
c. Constant Returns to Scale
2. Show a fall long run cost curve or LRATC curve
3. Outline the possible shapes which a LRATC curve may take
4. Explain the concept of the Minimum Efficient Scale
5. Explain the relationship between Short Run and Long Run Costs