7. 8. 9. . The production function is independent on different time frames. a. True b. False Fixed inputs are resources that can change in quantity depending on the level of output being produced. a. True b. False The law of diminishing returns states that as the use of an input increases (with other inputs xed), more output will be produced. a. True b. False Stage 1 of labor is the optimal stage of production. a. True b. False All costs are paid in cash. a. True b. False The total xed cost is characterized as a straight vertical line. a. True b. False If Total Revenue is equal to Total Cost, it is called a breakeven. a. True b. False If marginal is less than the average, the average increases. a. True b. False TFCIQ is Average Fixed Cost. a. True b. False 10.Total Fixed Cost is also referred to as sunk cost. a. True b. False