Author Question: A firm whose production function displays increasing returns to scale will have a total cost curve ... (Read 40 times)

123654777 · **on:** Jul 1, 2018

A firm whose production function displays increasing returns to scale will have a total cost curve that is
a. a straight line through the origin.
b. a curve with a positive and continually decreasing slope.
c. a curve with a positive and continually increasing slope.
d. a curve with a negative and continually decreasing slope.

Question 2

The expansion path for a constant-returns-to-scale production function
a. is a straight line through the origin with a slope greater than 1 if w > v.
b. is a straight line through the origin with a slope greater than 1 if w < v.
c. is a straight line through the origin, though its slope cannot be determined by w and v alone.
d. has a positive slope but is not necessarily a straight line.