Question 1

IF THE ANSWER IS FALSE, correct the statement to make it TRUE. WRITE OUT YOUR ANSWER IN CAPITAL LETTERS.

A. TRUE or FALSE If labour is a variable input or resource in production, the law of diminishing marginal returns implies that in the short run, labour's marginal product increases after a certain point.

B. TRUE or FALSE A normal profit is the minimum an entrepreneur must receive in order to remain in that line of work.

C. TRUE or FALSE To find Economic Profit, a person subtracts only implicit costs or opportunity costs from Total Revenue.

D. TRUE or FALSE The short-run is when all economic resources are variable.

E. TRUE or FALSE The marginal product curve is the slope of the total product curve.