Suppose a new process innovation occurs. On the graphs below, show graphically the effect this innovation has on the Total Product and Average Total Cost curves

Heartland and Soulland) The country with a comparative advantage in the production of drill presses is:

A) Heartland. B) Soulland. C) neither; they both use the same technology. D) neither; they both use the same amount of resources.

When economies of scale exist:

a. per unit production costs increase as output expands b. per unit production costs decline as output expands. c. marginal cost must decrease as output expands. d. per unit production costs remain constant as output expands.