For most commonly used social welfare functions, an efficient ...

[londonang]

For most commonly used social welfare functions, an efficient allocation is
 
  A) always preferred over any inefficient allocation.
  B) not possible.
  C) usually preferred.
  D) never preferred.

Question 2

Explain how a firm can have constant returns to scale in production and economies of scale in cost.
 
  What will be an ideal response?

[rosiehomeworddo]

Answer to Question 1

C

Answer to Question 2

A firm can have constant returns to scale in production at every output level. If the firm doubled all inputs the output would double. However, the firm may also more than double one input and double its output. Therefore in this way, as output doubles, the total cost might be less than doubling, resulting in a decreasing average cost, which is known as economies of scale.