During the 1990s, the nominal price of crude oil ____ and the real price ____

Increasing returns to size can be:

A) Observed as the firm approaches the inelastic portion of its marginal cost curve. B) Seen as the long run average cost curve turns up. C) Ensures that it is profitable to expand irrespective of product price. D) None of the above

Even-handed enforcement of contracts fuels economic prosperity because it

A) increases market uncertainty and the probability of contract violations. B) promotes gains from trade by keeping transaction costs low. C) increases transaction costs. D) permits individuals to invade or infringe on the property rights of others.