If a product exhibits increasing returns to scale, then the ...

[MirandaLo]

If a product exhibits increasing returns to scale, then the average cost of making the product will ______ as its production decreases?
 a. increase.
  b. decrease.
  c. remain the same.
  d. there is insufficient information provided to answer the question.

Question 2

The McCallum management principles advocate the use of
 a. time-motion study to determine the most productive way to perform job-tasks.
  b. employee stock-purchase programs.
  c. internal accounting systems and performance evaluations.
  d. leveraged buy-outs to increase the firm's control of an industry.

[Animal_Goddess]

Answer to Question 1

b. decrease.

Answer to Question 2

c. internal accounting systems and performance evaluations.