2.Suppose Johnson & Johnson can produce 1,000,000 vaccines per month at its California plant at a total cost of $20,000,000. Then it increases the size of its factory such that it can produce 2,000,000 vaccines per month with total costs of $40,000,000. J&J production exhibits:

Group of answer choices

diminishing marginal returns

production inefficiency

constant returns to scale

economies of scale

an upward-sloping planning curve

3.An avocado store is initially selling avocadoes for $1 each. It then realizes that students have more elastic demand than non-students. Which strategy makes most sense if it is to engage in price discrimination?

Group of answer choices

lower the price for everyone

raise the price below $1 for those with student ID and lower the price above $1 for those that do not.

lower the price below $1 for those with student ID and raise the price above $1 for those that do not.

raise the price for everyone

6.Cartels will have greater success if each member

Group of answer choices

lowers price together

set price equal to average total cost.

keeps production restricted to a quota.

independently maximizes profits

sets price equal to marginal cost.