Identifying returns to scale Aa Aa Imagine Marco owns a business that produces custom stationery. The only input to production he requires is the stationery printing machines, for which he pays a rental rate (r) of $5 per hour. The following table gives the number of machines required to produce each quantity (q) of stationery per hour. Calculate the total, marginal, and average costs of producing one, two, and three sets of stationery per hour and enter these values into the table. Then, use the red line (cross symbols), purple line (diamond symbols), and green line (triangle symbols) to plot the total, marginal, and average cost curves, respectively, on the graph that follows Total Cost Marginal Cost Average Cost Quantity (q) Machines per Hour 2 4 COST PER HOUR (Dollars) 50 Total Cost 40 Marginal Cost 30 Average Cost 20 OUTPUT PER HOUR (Stationery sets HelpClear All Marco's business faces returns to scale. Additionally, as he increases production, marginal costs are as output rises, meaning that the marginal cost is always average costs.