Problem
1. If the marginal revenue product of a gallon of oil used as input by a firm is $2.20 and the price of oil is $2.07 per gallon, what can the firm do to increase its profits?
2. A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of crop. If it had doubled its land and labor, production would have been 325,000 bushels. Does it have constant, decreasing, or increasing returns to scale?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.