Indicate whether you agree or disagree with each of the following statements.Briefly explain your answer.

1.Assume that the demand for agricultural products is usually inelastic with respect to price.In that case, when the total agricultural harvest of a crop increases because of unexpected good weather, total farm income (revenue) earned from that crop usually increases.

2. The XYZ Company, anticipating a downturn in its sales, closed one of its factories at the end of 2017.During 2018, usage of all inputs declined to a level of 75% of the previous year's level, while output fell to 80% of the previous year's level.The XYZ Company was operating in the range of increasing returns to scale (i.e., economies of scale).