Search results for "Endogenous entry"

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Strictly convex variable cost does not imply U-shaped average cost

2016

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.

Marginal costEconomics and EconometricsAverage fixed costTotal cost05 social sciencesEndogenous entrySettore SECS-P/06 - Economia ApplicataVariable costMicroeconomicsU-shaped average costConvex cost0502 economics and businessEconometricsEconomicsFixed costMarket power050207 economicsFixed costSettore SECS-P/01 - Economia PoliticaAverage cost050205 econometrics Minimum efficient scale
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