Increasing returns to scale result when A) in the long-run, an ...

[sdfghj]

Increasing returns to scale result when
 
  A) in the long-run, an increase in inputs will lead to an increase in the average products of inputs.
  B) in the long run, an increase in inputs will lead to an equivalent increase in output.
  C) labor becomes more skilled.
  D) All of the above

Question 2

If the government wanted to efficiently limit the emission of Carbon Monoxide by all firms to exactly four million tons it could
 
  A) issue rights to pollute worth four million tons and let the firms trade those rights in a market.
  B) appeal to firms' environmental conscience to pollute less.
  C) subsidize production.
  D) rely on the Coase Theorem.

[patma1981]

Answer to Question 1

A

Answer to Question 2

A