2. The law of decreasing returns can explain the shape of a _____________.

a.Short run marginal cost curve.

b.Long run marginal cost curve.

c.Short run average cost curve.

d.Falling total fixed cost curve.

3. From the theory of production, economic efficiency refers to _____________.

a.The combination of inputs that will maximize outputs.

b.The combination of inputs that involves minimal costs.

c.The combination of inputs that involves decreasing costs.

d.The combination of inputs that involves a constant cost.