Identify the false statement. a) As output increases the difference between a firm's average total cost and average variable cost curves cannot rise. b) c) d) Whenever a firm's average total costs are rising as output rises, average variable costs must be rising too. If a firm employs only one variable factor of production, labor, and the marginal product of labor is constant, then the marginal costs of production are constant too. If labor obeys the law of diminishing returns, and is the only factor of production used by the firm, then at every output level short-run average variable costs exceed marginal costs.

Identify the false statement. a) As output increases the difference between a firm's average total cost and average variable cost curves cannot rise. b) c) d) Whenever a firm's average total costs are rising as output rises, average variable costs must be rising too. If a firm employs only one variable factor of production, labor, and the marginal product of labor is constant, then the marginal costs of production are constant too. If labor obeys the law of diminishing returns, and is the only factor of production used by the firm, then at every output level short-run average variable costs exceed marginal costs.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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