Question

.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If this action more than doubles the amount of capital produced, then this firm is experiencing O Increasing returns to scale diminishing marginal returns o technological progress O positive marginal revenue QUESTION 12 When input prices are fixed, decreasing returns to scale implies that the long run average cost curve is downward sloping O horizontal upward sloping O Ushaped QUESTION 13 If the average cost is downward sloping, then O marginal cost is smalier than average cost e the marginal cost curve is also downward-sloping o there are increasing marginal returns to labor wages and other input prices are faling QUESTION 14 The marginal cost curve crosses only the AVC curve at its bottom O both the AC and AVC curves at their bottoms only the MR curve at its bottom the MP curve at its minimum QUESTION 15 Suppose all firms in an industry are identical. In the long run, entry and exit guarantee that all firms will have zero O marginal cost average cost economic profit O accounting profe QUESTION 16 Save A An Click Se and Submit to sae and submir. Click Save All Ansoers to sae all ansuers

Answer 1

11) increasing returns to scale. this is because increase in the inputs by a given proportion increases the output by a greater proportion which happens only when there are increasing returns to scale

12) upward sloping. Decreasing returns means increasing cost so that when there are decreasing returns additional output and average output keep on falling and marginal cost and average cost keep on rising

13) increasing marginal returns. The answer is explain in 12) whenever there are increasing returns there are diminishing cost so that average cost also declines

14) second option is correct

15) economic profit.