TRUE OR FALSE. 6 POINTS EACH. (Always assume Other things equal.) 1. In economics in the...

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TRUE OR FALSE. 6 POINTS EACH. (Always assume "Other things equal.") 1. In economics in the short run, a firm will have both fixed and variable resources. 2. In economics, the short run is defined as “one year or less" for all types of business firms. 3. Labor and natural resources would be examples of fixed resources for a firm. 4. The total cost of a good equals its fixed cost divided by its variable cost. 5. Specialization of labor and better use of capital goods can initially generate increasing marginal output (returns) for a firm in the production of a good. 6. When marginal productivity (efficiency) declines, the marginal cost to produce a good will also decline. 7. An example of a variable cost for a firm could be energy costs. 8. Each firm in pure competition produces the exact same product as all the other competing firms. 9. Each firm in pure competition has a small amount of control over the price of its product. 10. Agriculture was given as a close to real-life example of pure competition. 11. Firms in pure competition may make economic profits in the long run. 12. A disadvantage of pure competition is that there is no product variety for buyers. TRUE OR FALSE. 6 POINTS EACH. (Always assume "Other things equal.") 1. In economics in the short run, a firm will have both fixed and variable resources. 2. In economics, the short run is defined as “one year or less" for all types of business firms. 3. Labor and natural resources would be examples of fixed resources for a firm. 4. The total cost of a good equals its fixed cost divided by its variable cost. 5. Specialization of labor and better use of capital goods can initially generate increasing marginal output (returns) for a firm in the production of a good. 6. When marginal productivity (efficiency) declines, the marginal cost to produce a good will also decline. 7. An example of a variable cost for a firm could be energy costs. 8. Each firm in pure competition produces the exact same product as all the other competing firms. 9. Each firm in pure competition has a small amount of control over the price of its product. 10. Agriculture was given as a close to real-life example of pure competition. 11. Firms in pure competition may make economic profits in the long run. 12. A disadvantage of pure competition is that there is no product variety for buyers.

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The detailed answer for the above question is provided below answer 1 True In the short run a firm will have at least some fixed costs such as the cost of rent and machinery They will also have some v... View the full answer