When long-run average cost decreases as output increases there ...

[wenmo]

When long-run average cost decreases as output increases there are definitely
 
  A) increasing marginal returns.
  B) economies of scale.
  C) Both answers A and B are correct.
  D) Neither answer A nor B is correct.

Question 2

All of the following are devices that governments can use to achieve a more efficient allocation of resources in the presence of external benefits EXCEPT
 
  A) vouchers.
  B) private subsidies.
  C) marketable permits.
  D) public provision.

[sarajane1989]

Answer to Question 1

B

Answer to Question 2

C