According to classical economists, a decrease in the rate of interest will

Consider the following statements when answering this question. I. As Boeing's production fell 10% to 100 planes last year, learning by doing cannot account for this year's changes in long-run average costs. II

Failure to take into account the effects of learning by doing will lead to overestimates of the cost-output elasticity. A) I is true, and II is false. B) I is false, and II is true. C) Both I and II are true. D) Both I and II are false.

A firm operating in a perfectly competitive industry will continue to operate if it earns zero economic profits because it is likely to be earning positive accounting profits

a. True b. False Indicate whether the statement is true or false