True/False/Uncertain: Answer and briefly explain whether the following statement

Question

True/False/Uncertain: Answer and briefly explain whether the following statements are true, false, or uncertain. The explanation is more important than the actual "true, false, or uncertain" answer. 1) It is possible to have diminishing returns to a single factor of production but constant returns to scale at the same time. 2) An isoquant slopes downward when the inputs to production exhibit diminishing marginal returns. 3) The short-run marginal cost curve slopes upward when the inputs to production exhibit diminishing marginal returns. 4) Production cost is minimized when the marginal products of capital and labor are equal. 5) For a constant returns to scale technology, doubling all inputs will double the cost of production and also double output. Because the total cost of production increases with additional output, the marginal cost curve is upward sloping. (The first sentence is true. You should address whether the second sentence is true, false, or uncertain.)

Explanation / Answer

false. Cost is minimized at the levels of capital and labor such that the marginal product of labor divided by the wage (w) is equal to the marginal product of capital divided by the rental price of capital (r).

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