1. As we move up along a short-run production function (labor measured on the x-axis), which of the following is false? A. The quantity of output increases B. The marginal product of labor decreases C. The firm's variable costs are decreasing D. Fixed costs are unchanged

2. If we move down along a firm's isocost line (labor measured on the horizontal axis), which of the following statements is true? A. Production costs are increasing B. Production costs are decreasing C. The quantity of capital used in production is rising D. The quantity of capital used in production is falling