Question

1. Average costs curves initially fall

a. Due to declining average fixed costs

b. Due to rising average fixed costs

c. Due to rising fixed costs

d. Due to rising marginal costs

2. Marginal productivity is

a. The total output associated with total inputs

b. The total output associated with extra inputs

c. The extra output associated with total inputs

d. The extra output associated with extra inputs

3. If long-run average costs are constant with respect to output, you have

a. Increasing returns to scale

b. Decreasing returns to scale

c. Constant returns to scale

d. None of the above

4. If long-run average costs fall with output, you have

a. Increasing returns to scale

b. Decreasing returns to scale

c. Constant returns to scale

d. None of the above