Imagine that tripling the quantity of all inputs in the production, doubles the quantity of output. The firm: Group of answer choicesis experiencing decreasing returns to scaleshould shut down because it is not producing at an efficient scaleis experiencing increasing returns to scaleis on the inelastic part of the supply functionNone of the other answers is correct

Imagine that doubling the quantity of all inputs in the production, more than doubles the quantity of output. The firm: Group of answer choicesshould shut down because it is not producing at an efficient scaleis experiencing increasing marginal productis on the elastic part of the supply functionis experiencing increasing returns to scaleNone of the other answers is correct

When a decrease in the scale of production leads to higher average costs, the industry exhibitsGroup of answer choicesdiminishing returns.increasing returns to scale.decreasing returns to scale.constant returns to scale.

Nonrivalry of ideas and the standard replication argument imply the production function will haveGroup of answer choicesincreasing returns to scale.decreasing returns to scale.constant returns to scale.Pareto optimality.

If the slope of a total production function decreases as one input increases, the firm's underlying production function exhibits:a.increasing returns to scale.b.constant returns to scale.c.decreasing returns to a factor input.d.decreasing returns to scale.

In the short run, if a firm increases its production beyond a certain point, it may experience:Question 3Answera.Diminishing returns to the variable input.b.Increasing returns to scale.c.Constant returns to scale.d.A shutdown.