PART B: TRUE FALSE QUESTIONS Indicate whether the statement is true or false. 1. (1 point) In the short run production, all inputs are considered to be variable inputs. 2. (1 point) The increasing returns to scale refers to any additional in variable input causes the marginal product to decline after a certain point. 3. (1 point) When total product is at it maximum, marginal product becomes negative. 4. (1 point) Allowance for depreciation is an example of variable cost. 5. (1 point) If marginal cost curve is below average total cost, then average total cost is decreasing. . 6. (1 point) Average fixed cost curve slopes downward as output increases because of the spreading of fixed costs. 7. (1 point) In a perfect competition market, anyone can participate and there are no restrictions on leaving it. 8. (1 point) A price taker refers to a seller of a product or resource that can affect or influence the price of the product or resource by changing the amount it sells. 9. (1 point) In oligopoly, when there is a small change in the marginal cost, there would be no change in price and quantity at equilibrium. 10. (1 point) The demand curve schedule for a monopolistically competitive faced by the firm is less elastic. 11. (1 point) An oligopoly is dominated by a few firms that often act interdependently