Price cap regulation does not provide incentives to firms to minimize their costs because firms cannot change prices. sets the maximum price these firms can charge. gives firms the incentive to exaggerate their costs. Both answers does not provide incentives to firms to minimize their costs because firms cannot change prices and gives firms the incentive to exaggerate their costs are correct. Both answers does not provide incentives to firms to minimize their costs because firms cannot change prices and sets the maximum price these firms can charge are correct.

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.