Allocative efficienty exist when firms produce the output most preferred by consumers

Which of the following will cause consumption, and as a result, aggregate demand, to shift to the right?

a. an optimistic business forecast of future income growth b. increased consumer wealth c. an increase in consumer confidence d. all of the above

Constant returns to scale occur when: a. long-run average total cost decreases with an increase in output

b. long-run average total cost increases with an increase in output. c. long-run average total cost remains constant with an increase in output. d. long-run average variable cost decreases with an increase in output.