Answer the following statement(s) true (T) or false (F)

1. The short run is any period of time less than one year, while the long run refers to a period of time one year or more in length.
2. The production function describes how much output a firm can generate for various cost levels.
3. Marginal and average products can be plotted in the same graph as total product costs.
4. In deriving the marginal product of labor, we consider the increase in output of an additional worker using additional capital.
5. In order to compute the total cost of production when labor is the only variable, we need only need to know the quantities of labor and the current wage rate.


1. False
2. False
3. False
4. False
5. False

Economics

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Economics