Suppose that a cost-minimizing firm, faced with constant input prices, recently increase the quantity of each of its inputs by 10%. As a result, its output increased from 100 to 120 units. Indicate whether each for the following statements is true, false, or uncertain and explain your answer.
a) When y = 100, LAC is downward sloping.
b) If the firm had increase the quantity of each input by 5%, output would increase from 100 to 110 units.