Author Question: Future benefits for Social Security will ultimately be determined by _____. a. population growth ... (Read 68 times)

EY67 · **on:** Jul 1, 2018

Future benefits for Social Security will ultimately be determined by _____.

a. population growth
b. individual decisions on when to retire
c. the existence of private accounts
d. voters through the political process

Question 2

Explain how a firm can have constant returns to scale in production and economies of scale in cost.

What will be an ideal response?

Ptupou85 · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

d

Answer to Question 2

A firm can have constant returns to scale in production at every output level. If the firm doubled all inputs the output would double. However, the firm may have a decreasing average cost. As more inputs are used and output increases, the average cost declines, which is known as economies of scale.