Use True, False, or Uncertain (TFU) to answer these questions- Points based on the quality of explanation (5 points each).

1. Diminishing marginal utility for goods would imply that indifference curves slope downwards.

2. By Increasing the output of a pharmaceutical manufacturing facility, there will be an increase in the total costs of production of that facility by an amount equal to the current average cost of production.

3. The law of diminishing marginal returns creates decreasing returns to scale in production.

4. If a particular facility can be used for abdominal surgery or for the delivery of newborns then an increase in the local birthrate will tend to increase the cost of abdominal surgery.

5. Wage rates are related to how people value their leisure time.

6. The current cost of using a machine is directly related to how much was paid to acquire it.

7. Pareto efficiency is necessary but not sufficient for social welfare maximization.

8. Learning by doing in the workforce decrease marginal costs but not average costs.

9. If Hank's indifference curves for Advil and Aleve are straight lines and he faces fixed relative prices, then he will not change which medication he consumes regardless of income level. (Assume Hank always buys at least one of these meds)