Author Question: For a constant returns to scale production function: a. marginal costs are constant but the average ... (Read 46 times)

Bernana

  • Hero Member
  • *****
  • Posts: 530
For a constant returns to scale production function:
 a. marginal costs are constant but the average cost curve has a U-shape.
  b. both average and marginal costs are constant.
  c. marginal cost has a U-shape; average costs are constant.
  d. both average and marginal cost curves are U-shaped.

Question 2

An efficient customer sorting rule is one in which
 a. customers with high willingness to pay secure the discounted goods
  b. customers are rationed randomly between the discounted and full price goods
  c. no customer purchase below her willingness to pay
  d. customers with the lowest willingness to pay secure the discount goods
  e. brand loyalty allows the incumbent to retain its regular customers



miss.ashley

  • Sr. Member
  • ****
  • Posts: 371
Answer to Question 1

b

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library