Because two percent of the largest farms grow half of all of the grain in the United States, the grain industry is technically classified as an oligopoly

Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by

A) shutting down. B) lowering its price and increasing its output. C) raising its price and decreasing its output. D) lowering its price and decreasing its output. E) not changing its price and increasing its output.

If a farmer produces 1000 bushels of corn using ten acres of land and one tractor and is able to produce 2000 bushels of corn using twenty acres of land and one tractor, the farmer has

A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) no returns to scale.