Answer the following statement(s) true (T) or false (F)
1. Inputs owned by the firm are included when calculating its costs.
2. If marginal cost rises when output is increased, then the average cost of production is also rising.
3. When labor is the only variable input in the short run, average variable cost equals the wage rate times the average product of labor.
4. The marginal cost curve crosses average variable cost at the bottom of the average cost U.
5. Average Variable Cost can always be expressed as the ratio of the price of labor to the Average Product of Labor.
1. True
2. False
3. False
4. True
5, False
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A) raise; lower; lower B) lower; raise; lower C) raise; lower; raise D) lower; lower; raise