True or False:
1. Variable costs vary with the level of output, while fixed costs do not.
2. Marginal cost shows the change in total costs associated with a change in output by one unit, or the cost of producing one more unit of output.
3. Marginal costs are really just a useful way to view changes in fixed costs as output changes.
4. The total cost curve is the summation of the total variable cost and total fixed cost curves.
5. The average fixed cost curve is always a horizontal line, because fixed costs do not change with output.
6. The marginal cost curve crosses the average variable cost and average total cost curves at those curves’ lowest points.
7. At output levels where average total cost is rising, marginal cost must be greater than average total cost.
8. The average fixed cost curve declines whether the marginal cost curve is rising or falling.