Answer Happy

Suppose that the only inputs your company uses are labor and capital. than the negative It is possible to simultaneously have negative marginal returns to labor and increasing returns to scale if the marginal returns to capital are positive and larger marginal returns to labor. As a manager in this situation (negative marginal returns to labor and increasing returns to scale), you can minimize your average total cost in the short run by decreasing the quantity of labor employed What changes would you make in this situation to minimize your average total cost in the long run? (Select all that apply.) A. Decrease your use of labor to the minimum possible amount. B. Change your production process such that labor no longer has a negative marginal product. C. Make changes such that production takes place on the upward sloping portion of the cost curve. D. Increase your use of capital.