Topic: Theory of Firm: Production & CostPlease help me answer all of these. True or False1. Diminishing returns happen when the firm adds more amount of a variable input, it should alsotake lesser efficient units of that variable input.2. The amount spent of a firm in order to carry out a particular activity is called an outlay.3. When marginal revenue is equal to marginal cost, profit is maximized4. Average total cost will start to increase at the level of output at which average variable coststarts to increase.5. Opportunity cost is an explicit cost.6. Normal profit is an implicit cost of the firm.7. In the long run, a firm has no fixed costs.8. An increase in marginal returns of a firm result to an increasing average product.9. When total cost is increasing at a decreasing rate, MC, AVC and ATC are also declining.10. Economies of scale explains proportionality.

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1. Diminishing returns happen when the firm adds more amount of a variable input, it should also take lesser efficient units of that variable input. 2. The amount spent of a firm in order to carry out a particular activity is called an outlay. 3. When marginal revenue is equal to marginal cost, profit is maximized

1. Diminishing returns happen when the firm adds more amount of a variable input, it should also take lesser efficient units of that variable input. 2. The amount spent of a firm in order to carry out a particular activity is called an outlay. 3. When marginal revenue is equal to marginal cost, profit is maximized

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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