If a firm triples inputs and produces three times the output, ...

[ericka1]

If a firm triples inputs and produces three times the output, then there are
 
  A) constant returns to scale.
  B) diminishing marginal product.
  C) decreasing returns to scale.
  D) increasing returns to scale.

Question 2

If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question.
 
  a. True b. False

[tjayeee]

Answer to Question 1

A

Answer to Question 2

a

[ericka1]

Thanks for the timely response, appreciate it

[scikid]

Gracias!