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I think this production does not display this characteristic because this production functions can not decrease.
2. Four basic conditions:
? A large number of potential buyers and sellers
? Product homogeneity
? Rapid dissemination of accurate information at low cost
? Free entry into and exit from the market
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The firm should operate in the short term, as long as it obtains enough profit to cover its total costs. Revenue in excess of variable costs helps to cover fixed costs which are incurred even if the firm does not operate.
4. No. The excess returns are likely to go to the manager. The manager's salary will be bid up by other firms who want the manager's services...
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BP America Production Co., Successor in interest to Amoco Production Co., et al. v. Burton, Acting Assistant Secretary, Land and Minerals Management, Department of the Interior, et al.
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