Jessica makes and sells hand-crafted jewellery at a stall that she rented in a shopping centre and is operating in a perfectly competitive market. No matter what she produces, she must pay rent for the stall. The material costs of her making the jewellery is dependent on how many pieces of jewellery she crafts per day. Assume that rent and material costs are the only expenses that Jessica incurs.

Select the item from the list provided to make the following statements true.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.	The rent Jessica pays is an example of a fixed cost. It will ___________ as production increases.
- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.	If the market price for her jewellery is above her minimum average variable cost but below her minimum average fixed cost of production, then Jessica is making a/an __________.
- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.	In order to profit maximise (or to loss minimise), Jessica should produce a quantity of jewellery where her ____________ the market price for hand-crafted jewellery.

1.	economic loss
2.	increase
3.	minimum average variable cost equals
4.	marginal cost equals
5.	economic proft
6.	minimum average total costs equals
7.	accounting profit
8.	average variable cost
9.	decrease
10.	increase then decrease
11.	remain constant
12.	minimum average total cost is greater than