Question: 5. For the cost function TC = q0.8 0.6 w0.4 Demonstrate whether the following statements are true or false: 1. The function exhibits decreasing average

5. For the cost function TC = q0.8 0.6 w0.4 Demonstrate whether the following statements are true or false: 1. The function exhibits decreasing average cost. (3pts) 11. The function is homogeneous of degree 1 in r and w. (3pts) The elasticity of marginal cost with respect to wage exceeds the elasticity with respect to the rental rate of capital. (4pts)

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