If a firm's output doubles when all inputs are doubled, ...

[D2AR0N]

If a firm's output doubles when all inputs are doubled, production is said to occur under conditions of
 
  A) increasing returns to scale.
  B) imperfect competition.
  C) intra-industry equilibrium.
  D) constant returns to scale
  E) decreasing returns to scale.

Question 2

Summarize the type of agreement that NAFTA is, its history, the process by which it has been implemented in the last 15 years.
 
  What will be an ideal response?

[mfedorka]

Answer to Question 1

D

Answer to Question 2

The North American Free Trade Agreement between the U.S., Canada, and Mexico went into effect on January 1st, 1994. In many ways, it is an expansion of the agreement that previously existed between Canada and the U.S. to include Mexico. It is broader than this previous agreement in that it includes accords to enforce environmental and labor laws. By now, tariffs on virtually all trade among these three countries have fallen to zero, with trade in services substantially liberalized and restrictions on investment flows relaxed. Although the agreement remains controversial, the amount of trade that has been created between the three countries ranks NAFTA as the second largest preferential trade agreement in the world, only behind the European Union.