Answer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that theyr face the same input prices. The firm whose production function exhibits increasing returns to scale will face 0 increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A rm whose production function exhibits constant returns to scale will experience 0 ouble increase in output when it doubles its use of all inputs. 3. A Cobb-Douglas production function whose exponents sum to greater than one exhibits 0 returns to scale. 4. Returns to Scale relates 0 to 0 _ whereas Economies of Scale relates O to 0 5. A rm that is experiencing decreasing longrun average cost is experiencing 0 Answer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that they face the same input prices. The firm whose production function exhibits increasing returns to scale will face ncrease in cost when compared to the firm whose production function exhibits decreasing returns to scale. an equal 2. A firm whose production function exhibits constant returns to a larger rience double increase in output when it doubles its use of all inputs. a smaller 3. A Cobb-Douglas production function whose exponents sum to greater than one exhibits returns to scale. 4. Returns to Scale relates whereas Economies of Scale relates $ to 5. A firm that is experiencing decreasing long-run average cost is experiencingAnswer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that theq.r face the same input prices. The firm whose production function exhibits increasing returns to scale will face 0 increase in cost when compared to the firm whose production function exhibits decreasing returns to sale. 2. A rm whose production function exhibits constant returns to scale will experience double increase in output when it doubles its use of all inputs. an exactlyI 3. A CobbDouglas production function whose exponents sum to greater than one ex a less than returns to scale. a greater than 4 Returns to Scale relates 0 to 0 , whereas Economies of Scale relates O to 0 5. A rm that is experiencing decreasing longrun average oust is experiencing 0 . Answer the following questions related to Fleturns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and laborand that theyr face the same input prioes. The firm whose production function exhibits increasing returns to scale Wl\" face O increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A firm whose production function exhibits oonstant returns to scale will experience 6 double increase in output when it doubles its use of all inputs. 3. A CobbDouglas production function whose exponents sum to greater than one exhibits returns to scale. increasing 4. Returns to Scale relates O to O decreasing es of Scale relates O to O constant 5. A firm that is experiencing decreasing longrun average cost is experiencing 0 . Answer the following questions related to Returns to Scale: 'l. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that theyr face the same input prices. The firm whose production function exhibits increasing returns to scale will face 0 increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A firm whose production function exhibits constant returns to scale will experience 0 couble increase in output when it doubles its use of all inputs. 3. A CobbDouglas production function whose exponents sum to greater than one exhibits 0 returns to scale. 4. Returns to Scale relates o 0 , whereas Economies of Scale relates 0 to O changes in input usage 5. A firm that is experienci changes in cost cost is experiencing 6 changes in output Answer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that they face the same input prices. The firm whose production function exhibits increasing returns to scale will face increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A firm whose production function exhibits constant returns to scale will experience double increase in output when it doubles its use of all inputs. 3. A Cobb-Douglas production function whose exponents sum to greater than one exhibits returns to scale. 4. Returns to Scale relates whereas Economies of Scale relates to $ changes in input usage 5. A firm that is experiencing decreasing long-run average co changes in cost changes in outputAnswer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that they face the same input prices. The firm whose production function exhibits increasing returns to scale will face increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A firm whose production function exhibits constant returns to scale will experience double increase in output when it doubles its use of all inputs. 3. A Cobb-Douglas production function whose exponents sum to greater than one exhibits returns to scale. 4. Returns to Scale relates whereas Economies of Scale relates changes in input usage 5. A firm that is experiencing decreasing long-run average cost is experiencing changes in cost changes in outputAnswer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that they face the same input prices. The firm whose production function exhibits increasing returns to scale will face increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A firm whose production function exhibits constant returns to scale will experience double increase in output when it doubles its use of all inputs. 3. A Cobb-Douglas production function whose exponents sum to greater than one exhibits returns to scale. 4. Returns to Scale relates whereas Economies of Scale relates changes in cost 5. A firm that is experiencing decreasing long-run average cost is experiencing change in input usage changes in outputAnswer the following questions related to Returns to Scale: 1. Two firms seek to double their output by increasing usage of all inputs by a fixed proportion. Assume both firms produce the good using only capital and labor and that they face the same input prices. The firm whose production function exhibits increasing returns to scale will face increase in cost when compared to the firm whose production function exhibits decreasing returns to scale. 2. A firm whose production function exhibits constant returns to scale will experience double increase in output when it doubles its use of all inputs. 3. A Cobb-Douglas production function whose exponents sum to greater than one exhibits returns to scale. 4. Returns to Scale relates whereas Economies of Scale relates 5. A firm that is experiencing decreasing long-run average cost is experiencing economies of scale diseconomies of scale economies of scale