Refer to the graph below. It shows the cost curves for a competitive firm. If the market price falls to $0.55, the optimal output rate is:

Economies of scale imply that within some range one can increase the size of operation and:

a. total cost will decrease. b. fixed cost will decrease. c. average total cost will decrease. d. average total cost will increase. e. average variable cost will decrease.

A soil bank program pays farmers not to grow food on some of their land

Indicate whether the statement is true or false