Describe whether the statements are true or false. Explain your answers:

1.) If a firm has constant returns to scale, this implies that if the firm increases the amount of labor that it uses in the short run, there will always be a proportional increase in output (e.g., if it uses twice as much labor, it will produce twice as much output).

2.) When the government imposes a maximum price (price ceiling) below the equilibrium price in an initially efficient market, this will make consumers better off but make producers worse off.