Complete the following statements about production and costs.

(i) At the lowest point of a firm's average cost curve, Answer total cost is minimised

b.) marginal cost intersects average cost

c.) marginal cost is minimised

d.) average cost is zero.

(ii) If the firm's marginal cost of production is constant,

Answer a) its total cost curve is an upward-sloping curve that gets progressively steeper

b.)its total cost curve is a horizontal line

c.)its marginal cost curve is a horizontal line

d.) its marginal cost curve is an upward-sloping straight line.

(iii) If a firm increases all of its inputs by 5% and its output increases by 5%, we can say that this firm has

Answer a.)increasing returns to scale

b.)negative returns to scale

c)constant returns to scale

d.)decreasing returns to scale.

(iv) If a firm experiences economies of scale,

Answer

a.)its costs per unit will fall as it expands production

b.)its costs per unit will increase as it expands production

c.)its costs per unit will be unchanged as it expands production.