The joining of firms that are producing or selling a similar product is

Suppose an economy has the following production function: Y = A × K1/4 × H3/4. Which of the following is true of this economy?

A) Production in this economy exhibits increasing returns to scale. B) Production in this economy exhibits decreasing returns to scale C) Production in this economy exhibits constant returns to scale. D) Production in this economy decreases when the price level increase.

Which of the following would increase prices for U.S. consumers?

a. a tariff on imported automobiles b. an automobile import quota c. a foreign government subsidizing auto production d. (a) and (b) above only