Question: 1. A rm has a standard shaped short run marginal product function with a maximum value at 4 units of the variable input and the

1. A rm has a standard shaped short run marginal product function with a maximum value at 4 units of the variable input and the total product from 4 units of the input is 18 units of output. Which of the following statements must be true? I. The Marginal cost is increasing at 20 units of output. II. The AP is decreasing at 5 units of the variable input Ill. The VC is decreasing at 15 units of output a) Only] is true b) Onlyland II are true c) Only I and III are true (1) Onlyr II and III are true e) All of them are true

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