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Write T if the statement is true. If the statement is false, underline the wrong word and write the correct answer on the line before each number. 1. Productivity is the output produced by a unit of factor input during a given span of time. 2. The theory of production describes the functional relationships of output and economic resources, assuming these are of fixed size. 3. Improvement in productivity can be seen if the ratio of output over input increases since a unit of input can produce more of the same output, A production function illustrates the varied combinations of inputs at the same level of plant capacity. 5. Diseconomies of scale are the negative sloping portion of a long-run average cost curve. 6. The Law of Diminishing Returns describes the tendency at some point for each succeeding addition to output to become smaller as the firms add succession units of variable input to some fixed inputs. 7. An isoquant map contains infinite combinations of resource inputs that the same budget can purchase given constant prices. 8. The AP and MP of a production function may shift downward or upward only because the overall productivity level of that firm may also change. 9. Computers and computerized machineries are means of improving overall efficiency by utilizing resource-saving technology. 10. Returns to scale are the indicator of plant-size change of a given business firm.11. MRS measures the price of labor inputs over the price of capital outputs. 12. Output yielded from the last unit of input is marginal product. 13. Maximum output is otherwise known as plant capacity. 14. The quotient from dividing TP by the number of variable inputs is average product. 15. Diseconomies of scale are the positive sloping portion of a long-run average cost curve