PART B : TRUE /FALSE QUESTIONS Indicate whether the statement is true or false. 1. (1 point) Long run is a period in which some inputs are fixed and other input are variable. 2. (1 point) When Marginal Product(MP) increase, Total Product(TP) increase at increasing rate. 3. (1 point) Marginal Product(MP) is equal to Average Product(AP), when Marginal Product(MP) is at its maximum. 4. (1 point) The usage of savings by entrepreneurs to purchase new equipment is an example of implicit cost. 5. (1 point) Average Total Cost(ATC) is a U-shaped curve because it consists of Average Fixed Cost(AFC) and Average Variable Cost(AVC) which is affected by the law of diminishing marginal returns. 6. (1 point) If short run Average Total Cost(ATC) is increasing, while Marginal Cost(MC) is decreasing. 7. (1 point) Economists define a market as a place, where buyers go to purchase units of a commodity. 8. (1 point) In a perfectly competitive market, firms may increase the price of the product to raise higher total revenue. 9. (1 point) A monopolistic competitive firm will maximize its profits by producing goods to the point where its marginal revenues equals its marginal costs. 10. (1 point) Competition between firms is a feature of oligopolistic markets. It arises because the acts of each company in an industry have an impact on the other companies. 00 2022/D/PEC1133 CONFIDENTIAL 11. (1 point) In the monopoly market, consumers face an elastic demand, since they have no choice and have to buy the products regardless of the price