Suppose the long-run cost function is C = 3q. What is the cost-output elasticity for this case? A. 1/3 B. 3 C. 2 D. 1

Question

asked May 18, 2020 112k views

1 Answer

Zhenhir · Answer 1 · 2020-05-23T01:43:28+0000

Answer:

D. 1

Step-by-step explanation:

C = 3q

differentiating:

dC/dq = 3

then:

the cost-output elasticity = dC/dq*q/C

= 3*q/3q

= 1

Therefore, The cost-output elasticity for this case is 1.