New growth theory states that increases in ________ capital will ...

[K@]

New growth theory states that increases in ________ capital will result in ________ at the ________ level.
 
  A) physical; decreasing returns to scale; firm
  B) knowledge; increasing returns to scale; economy
  C) knowledge; decreasing returns to scale; economy
  D) knowledge; increasing returns to scale; firm

Question 2

Firms in perfect competition produce the productively efficient output level in the short run and in the long run.
 
  Indicate whether the statement is true or false

[lolol]

Answer to Question 1

B

Answer to Question 2

FALSE