Consider the following statements when answering this question. ...

[anjilletteb]

Consider the following statements when answering this question.
 
  I. A technology with increasing returns to scale will generate a long-run average cost curve that has economies of scale.
  II. Diminishing returns determines the slope of the short-run marginal cost curve, whereas returns to scale determine the slope of the long-run marginal cost curve.
  A) I is true, and II is false.
  B) I is false, and II is true.
  C) Both I and II are true.
  D) Both I and II are false.

Question 2

The marginal product of labor for Acme, Inc is 15. The average product of labor is 25, and the price of labor is 10. Assuming that Acme, Inc is a competitor in its output and input markets, the marginal revenue product of labor:
 
  A) is 10.
  B) is 150.
  C) is 250.
  D) is 375.
  E) cannot be determined with the information provided.

[jennafosdick]

Answer to Question 1

C

Answer to Question 2

E