4. The long run average cost at any production level q is never higher than the short run average cost at the same production level q. a. True b. False 2. If increasing returns to scale are present, the long-run average cost: a. increases as more output is produced b decreases as more output is produced C. stays constant as more output is produced d. There is not enough information to determine. 10090 Suppose that the prices of labor and capital both increase by 100%. This implies that the firm's long run cost of production a. increases by exactly 100% b. increases by less than 100% increases by more than 100% d. there is not enough information to determine. 4. Suppose that a firm's production function is f(L, K) = L0.25 10.25. The cost of labor L is $4 per unit, and the cost of capital K is $25 per unit. What is the long run cost of producing q = 10 units of output? a. $200 b $2000 ( 2 Jrw ) & c. $20000 d. None of the above ( 21 100 ) 100 Suppose that a firm's production function is f(L, K) = L K . The cost of labor L is $4 per unit, and the cost of capital K is $25 per unit. What is the long run cost of producing q = 100 units of output? $200 $2000 c. $20000 d. None of the above ( 25100 ) 100'5 6 Suppose that a firm's production function is f (L, K) = min{2L, 4K}. The cost of labor L is $4 per unit, and the cost of capital K is $10 per unit. What is the long run cost of producing q = 100 units of output? a. $200 b $450 C. $900 d. None of the above