Are the following statements true or false? a. _________If marginal product is g

Question

Are the following statements true or false?

a. _________If marginal product is greater than average product, average product is falling.

b. _________Marginal cost is less than average variable cost when average variable cost is falling.

c. _________In the short run, as output increases, the difference between average total cost and average variable cost increases.

d. _________In the short run where total variable cost is increasing at a decreasing rate, marginal cost is positive and decreasing.

e. _________If the marginal cost curve is below the average variable cost curve, then marginal cost must be decreasing.

f. _________If the average total cost curve is above the marginal cost curve, then total costs must be increasing.

g. _________If marginal cost is between average variable cost and average total cost, then both average variable cost and average total cost are increasing.

h. _________The marginal cost curve intersects the average variable cost curve at the maximum value of the average variable cost curve.

i. _________In the short run when the marginal product of labor rises, the marginal cost of an additional unit of output rises.

j. _________Average fixed cost equals total fixed cost divided by total output

Explanation / Answer

a. _False________If marginal product is greater than average product, average product is falling.

b. _True________Marginal cost is less than average variable cost when average variable cost is falling.

c. _True________In the short run, as output increases, the difference between average total cost and average variable cost increases.

d. _False________In the short run where total variable cost is increasing at a decreasing rate, marginal cost is positive and decreasing.

e. _True________If the marginal cost curve is below the average variable cost curve, then marginal cost must be decreasing.

f. _False________If the average total cost curve is above the marginal cost curve, then total costs must be increasing.

g. _True________If marginal cost is between average variable cost and average total cost, then both average variable cost and average total cost are increasing.

h. _False________The marginal cost curve intersects the average variable cost curve at the maximum value of the average variable cost curve.

i. _False________In the short run when the marginal product of labor rises, the marginal cost of an additional unit of output rises.

j. _True________Average fixed cost equals total fixed cost divided by total output

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