I. TRUE OR FALSE (5 pts each). No points will be given without a short explanation of your answer. 1. The long run eect of a quantity tax imposed on a competitive industry is that consumers end up paying the whole tax amount. 2. To minimize the cost of producing a given amount of output, the marginal products of all inputs must be equalized. 3. If average variable cost is decreasing then marginal cost is decreasing. 4. The prot-maximizing (unconditional) demand for an input equals its long-run conditional input demand for producing the prot-maximizing output