1.Diminishing Returns versus Diseconomies of Scale. Explain the difference between diseconomies of scale and diminishing returns. Based on the cost curves you’ve seen in this chapter, which is more...

1.Diminishing Returns versus Diseconomies of Scale. Explain the difference between diseconomies of scale and diminishing returns. Based on the cost curves you’ve seen in this chapter, which is more likely in firms?

2. Constant Marginal Cost. Consider a firm operating in the long run with an indivisible input costing $575. The marginal cost of production is constant at $11 per unit. Draw the firm’s long-run average-cost curve for 1 to 10 units of output. The long-run average cost drops from $
for the first unit to $
  for the tenth unit