If the average total cost of producing 20 sweaters an hour falls ...

[craiczarry]

If the average total cost of producing 20 sweaters an hour falls when the firm doubles all its inputs, then the
 
  A) short-run average total cost curve shifts upward because all inputs have increased.
  B) firm moves along its short-run average total cost curve.
  C) firm experiences economies of scale.
  D) long-run average cost curve shifts downward.

Question 2

A government subsidy for a good
 
  A) is similar to a tax insofar as it decreases the production of the good being subsidized.
  B) increases production of the subsidized goods.
  C) punishes those who consume or produce the subsidized good.
  D) has no effect on the quantity of the good produced.

[ky860224]

Answer to Question 1

C

Answer to Question 2

B

[craiczarry]

Gracias!

[FergA]

Excellent