Fixed costs depend on how much output is produced

TRUE/FALSE

1. Fixed costs depend on how much output is produced.

2. The total variable cost curve is determined by the total product curve.

3. The law of diminishing marginal returns largely determines how variable and total

costs vary with output.

4.  The marginal cost curve is typically downward sloping.

5. A single isocost line represents a given amount of output

6. A point of tangency between an isocost curve and an isoquant shows the maximumoutput attainable at a given cost.

7. If the price of an input changes, there will be a new expansion path.

7.  What is the maximum output that can be produced for a total cost of TC1?

8. If the firm wants to produce Q4 units of output in the least costly manner, how much

will it have to spend?

9.  Fill in the spaces in the accompanying table:

10.  Suppose that Marriott’s production function is characterized by constant returns to scale at all output levels. What will the firm’s long run average cost curve look like?