1. For a constant returns to scale production function:
a. marginal costs are constant but the average cost curve as a
U-shape
b. both average and marginal costs are constant
c. marginal cost has a U-shape, average costs are constant
d. both average and marginal cost curves are U-shaped
2. The production function q = 10K +50L exhibits:
a. increasing returns to scale
b. decreasing returns to scale
c. constant returns to scale
d. none of the above
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1. For a constant returns to scale production function: a. marginal costs are constant but the...
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