True or false ? why ? 1. The production function in a widget factory is described as digest = min (2, ). The marginal rate of technical substitution is likely to be decreasing as labor increases. 2. Farmer Joe currently grows 400 pounds of tomato every week. His total cost is $1000 and fixed cost is $450. Suppose the market price for tomato is $1.5/lb and Joe is a price taker. He should shut down to minimize the loss. 3. The Fed's decision on increasing the interest rate has caused the stock market to act very volatile. Meanwhile, the return on treasury bill increased. It is possible for someone to be indifferent when both market conditions happen the market. Please use the stock-treasury bill indifference curve and budget line to support your answer. the market. indifference curve and budget line to support your