A generalized economic-uneconomic boundary for short run product and cost curves

Conclusions It has been found that for any production function homogeneous of degreem, the tangency point between theLRAPL curve and theSRAPL curve will provide a demarcation between those points that are economic, and hence relevant, and those that are uneconomic and hence irrelevant. As a special case, for a linear homogeneous function, the intersection ofSRAPL withSRMPL also coincides with this boundary.