The cost-output elasticity EC = (?C/C)/(?q/q), where C is total cost and q is total output,

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    measures economies of scale, and when EC<1 the long run marginal cost is less than average and the long run average cost is falling.
     measures economies of scale, and when EC=1, the long run marginal cost is less than average and the long run average cost is falling.
     and when EC=1 the long run marginal cost is equal to the long run average cost and the firm is experiencing economies of scale.
     and when EC>1 the long run marginal cost is greater than the long run average cost and firm is experiencing economies of scale.
asked Jun 2, 2013 in Economics by anonymous
    

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measures economies of scale, and when EC<1 the long run marginal cost is less than average and the long run average cost is falling.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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