Please choose the BEST answer and explain

1. Along its long run total cost curve, a firm is producing:

• each level of output using the input mix that has the lowest cost
• at the minimum points of its various total cost curves
• each level of output using the fewest possible inputs

2. The firm's long run average total cost (ATC) curve:

• lies above its short run ATC curves at every output level
• intersects each short run ATC curve at its minimum point
• touches each of the firm's short run ATC curves at its lowest points

3. If a firm increases its output level by 50% and, as a result, a long run total cost rises by 40%, the firm is experiencing __?__

• decreasing returns to scale
• increasing returns to scale
• economies of scale

4. The imaginary line that connects all points of tangencies between the isoquants and the isocosts is called __?__

• expansion path
• consumer equilibrium
• price-consumption line

5. The demand curve of a purely competitive industry is described to be perfectly elastic.

• T
• F