1.A firm produces two products, gasoline and plastic. The firm produces x units of gasoline, and y units of plastic.The production technology displays the following costs, TC is the total cost function:

TC (x = 0, y = 50)=100

TC (x = 0, y = 100)=210

TC (x = 5, y = 0)=150

TC (x = 10, y = 0)=320

TC (x = 5, y = 50)=240

TC (x = 10, y = 100)=500

Which of the following is true?

a.This production function displays economies of scale for gasoline only.

b.This production function displays economies of scale for plastic only.

c.This production function displays economies of scale for both gasoline and plastic.

d.This production function displays economies of scope, but does not have increasing returns to scale for gasoline or plastic.

e.This production function has economies of scope, and it has increasing returns to scale for gasoline.