Question

if the firm produces q1 units of output with two inputs, the firm will be experiencing which of the following in the short run and in the long run? responses short run long run increasing marginal returns economies of scaleshort run long run increasing marginal returns economies of scale , short run long run increasing marginal returns diseconomies of scaleshort run long run increasing marginal returns diseconomies of scale , short run long run diminishing marginal returns economies of scaleshort run long run diminishing marginal returns economies of scale , short run long run diminishing marginal returns diseconomies of scaleshort run long run diminishing marginal returns diseconomies of scale , short run long run constant marginal returns diseconomies of scale

Answer 1

It is not possible to determine the answer to this question without more information. The relationship between the inputs and the output is not known, so we cannot determine whether the firm will experience increasing, diminishing, or constant marginal returns. Similarly, we do not know how the firm's costs will change as it produces more output, so we cannot determine whether the firm will experience economies or diseconomies of scale.