(Solved): 6: The point of tangency between an isoquant and the isocost line indicates: a. that in the long ru ...

6: The point of tangency between an isoquant and the isocost line indicates: a. that in the long run fixed costs are equal to variable costs. b. the maximum cost incurred for producing one unit of output. c. that in the long run marginal costs tend to exceed fixed costs. d. the minimum cost necessary to produce a particular level of output. 7: If constant returns to scale apply to the entire range of production, then the long-run total cost curve would most likely: a. be a straight line from the origin. $b$. to increase at a decreasing rate initially, and then increase at an increasing rate. c. to increase at an increasing rate initially, and then increase at a decreasing rate. d. be U-shaped. 8: When average costs fall as output increases, it is due to level of output it is due to ; when $\mathrm{AC}$ falls for a given a. economies of scale; learning by doing b. economies of scale; diseconomies of scale c. learning by doing; economies of scale d. learning by doing; diseconomies of scale 9: Some firms can attain lower production costs through their cumulative production experience. The average cost curve of such firms shift downward with each successive bulk increase in total production. The situation described above refers to: a. economies of scale. b. economies of scope. c. learning by doing. d. the familiarity index.