1. Explain the relationship between marginal product and average product. True/False : 2. Increasing retums to scale result when in the long run, an Increase in Inputs will lead to an equivalent increase In output. 3. The perfect substitution of two inputs implies that two inputs can be substituted at some constant ratio. Tests; 4. The difference between the short-run and the long-run is A) three months, or one business quarter. B) the time it takes for firms to change all Inputs In the production process. C) the time it takes for firms to change only their variable Inputs. D) More information is required to answer this question. 5. The "Law of Diminishing Returns" states that A) additional inputs will reduce output B) additional inputs will decrease average productivity, C) the supply of inputs is becoming scarce. D) additional inputs will lead to less additional output