Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7384249 | Research in Economics | 2016 | 11 Pages |
Abstract
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Luigi Balletta, Antonio Tesoriere,