The production function 
can have increasing returns to scale or decreasing returns to scale -- but it cannot have initially increasing and eventually decreasing returns to scale.
Answer the following statement true (T) or false (F)
True
Rationale:
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Refer to the figure above. If the monopolist faces a constant marginal cost of $6, at what price should it sell its output to maximize profits?
A) $2 B) $6 C) $10 D) $12
Refer to Table 15-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should A) increase income taxes. B) sell Treasury securities. C) increase the required reserve ratio. D) buy Treasury securities.
The aggregate supply curve shows the relationship between the:
A. overall price level in the economy and total production by firms. B. unemployment rate and total production by firms. C. overall price level in the economy and the unemployment rate. D. inflation rate and the overall price level in the economy.
Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF. b. It will be inside the PPF. c. It will be outside of the PPF. d. It will be shifting the PPF out.