A production function may exhibit:
a. constant returns to scale and diminishing marginal productivities to all inputs.
b. constant returns to scale and diminishing marginal productivities to all but one input, but at least one input must have a constant marginal productivity.
c. constant returns to scale and diminishing marginal productivity to at most one input.
d. constant returns to scale and diminishing marginal productivities for no inputs.
a
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If a firm enjoys economies of scale, _____.
(A) Its average total cost will increase as production increases. (B) Its total costs will decrease as production increases. (C) Its average total cost will decrease as production increases. (D) Its marginal revenue will increase as production increases.
The twin responsibilities of the Federal Reserve are:
A. to print money and ensure price stability. B. to ensure price stability and regulate international trade. C. to maintain full employment and balance the federal budget. D. to ensure price stability and maintain full employment.