Suppose That The Only Input Used In The Generation Of Solar Energy Is Sunlight Economics Homework Help

1. Suppose that the only input used in the generation of solar energy is sunlight, which has a zero cost. The average total cost of producing electricity is:

a. zero.
b. equal to the marginal cost.
c. equal to the average fixed cost.
d. immeasurably high.

2. When a firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is _________ and the firm is experiencing___________.