Question 1. True/False -3 points possible Answer the following true/false question by indicating whether the statement is true or false and provide an explanation. You will earn 0.5 points per question for the correct answer and 0.5 points for providing the correct explanation. 1. A firm has constant returns to scale if the second derivative of the production cost function is zero, i.e., the marginal cost function is a constant. 2. The integration of renewable technologies such as wind and solar into the power grid could lower the inframarginal rents of other power producers such as nuclear and natural gas plants. 3. At a market equilibrium, no new peaker capacity can enter the market and expect to fully recover their investment and fixed costs through inframarginal rents