Answer the following statements true (T) or false (F)
1) When making output decisions, managers of firms producing a joint product with fixed proportions need to pay attention to the separate prices of the joint goods.
2) If a firm is producing a joint product with variable proportions, if the price of one of the joint products changes, to maximize profits, managers must adjust both the total production of the jointly produced product and the products' proportions.
3) If a firm is producing a joint product and the price of one of the products increases, the marginal benefit of producing more of that product increases.
4) If a firm is producing a joint product with variable proportions, producing more of one product means producing more of the other product.
5) Because the decision involves the production of two goods, marginal analysis cannot be used to determine the profit-maximizing proportions of jointly produced products.
1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) FALSE
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Fill in the blank(s) with the appropriate word(s).