Output elasticity measures the percentage change in output associated with a one percentage change in all inputs. Increasing returns to scale implies that output elasticity is

a.

equal to 1

b.

less than 1

c.

greater than 1

d.

undetermined given the information

Profit-maximizing firms:

a.

sell at lower prices than revenue-maximizing firms.

b.

sell less output than revenue-maximizing firms.

c.

set marginal cost equal to average cost.

d.

none of these.