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4. Suppose a firm hires all production inputs in competitive resource markets. The firm wishes to expand, and it finds that it is able to increase long-run total output by 10%, but total production costs increase by 5%. It must be the case that: A. the firm is experiencing constant returns to scale. B. the firm is currently operating where the long-run average total cost curve is upward sloping. C. the firm experiencing diseconomies of scale. D. the firm is currently operating at the bottom of the long-run average total cost curve. E. the firm is experiencing economies of scale. 5. Which of the following would cause a supply curve to shift to the right? A. Consumer tastes and preferences get stronger. B. The price of a substitute consumer good increases. C. Production technology improves. D. The price of a complementary consumer good decreases. E. The price of a production input rises.www.apstudy.net ---------------------
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