A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be

Given the indifference curve in the above figure, which point is preferred to point a?

A) point b B) point c C) point d D) point e

If your long-run costs exhibit increasing returns to scale, securing big orders leads you to

a. Increase average costs b. Reduce average costs c. Keep the average costs constant d. None of the above