A) Without any further information, all endogenous variables would explain variations in the
average operating expense ratio. (Not sure if \'x\' is a variable, a typo, or something else)
B) Quadratic
C) Initially there will be economies of scale, after which there will be diseconomies of scale.
This conforms to a typical average cost function (the inverse parabolic shape). The point of
transition from economies of scale to diseconomies of scale is easy to calculate however I will
not attempt to do so as I might be misinterpreting the \'x\'.
Solution
A) Without any further information, all endogenous variables would explain variations in the
average operating expense ratio. (Not sure if \'x\' is a variable, a typo, or something else)
B) Quadratic
C) Initially there will be economies of scale, after which there will be diseconomies of scale.
This conforms to a typical average cost function (the inverse parabolic shape). The point of
transition from economies of scale to diseconomies of scale is easy to calculate however I will
not attempt to do so as I might be misinterpreting the \'x\'..
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A) Without any further information, all endogenous variables would e.pdf
1. A) Without any further information, all endogenous variables would explain variations in the
average operating expense ratio. (Not sure if 'x' is a variable, a typo, or something else)
B) Quadratic
C) Initially there will be economies of scale, after which there will be diseconomies of scale.
This conforms to a typical average cost function (the inverse parabolic shape). The point of
transition from economies of scale to diseconomies of scale is easy to calculate however I will
not attempt to do so as I might be misinterpreting the 'x'.
Solution
A) Without any further information, all endogenous variables would explain variations in the
average operating expense ratio. (Not sure if 'x' is a variable, a typo, or something else)
B) Quadratic
C) Initially there will be economies of scale, after which there will be diseconomies of scale.
This conforms to a typical average cost function (the inverse parabolic shape). The point of
transition from economies of scale to diseconomies of scale is easy to calculate however I will
not attempt to do so as I might be misinterpreting the 'x'.
