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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
Price and Output Determination Under Perfect Competition 33
Whether Decreasing Cost
Some authors argue that the ‘phenomenon of decreasing cost … is not consistent with all the require-
ments of perfect competition.’
2
However, the possibility of a decreasing cost industry cannot be ruled out
in a very long period. One reason for this is the likelihood of the existence of large external economies
of scale, particularly in case of young industries in the undeveloped areas.
3
An increase in the number
of industries and the consequent growth of transportation, marketing facilities and nancial institutions
may reduce the industry’s cost of production. ...
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Publisher Resources

ISBN: 9788131797655