1. A firm's total cost curve would begin at 0 in the long run; whereas the curve would start at a point above 0 where the firm's total fixed cost is in the short run. True or False? 2. Diminishing rate of return for a competitive firm kicks in as soon as its Marginal Product (MP) starts to decline or Marginal Cost starts to increase. True or False? 3. As a college graduate with a degree in Accounting, you decided to open up your own firm instead of working for someone else. The first year's operating results come in as follow: Total Revenue = $250,000 ; Total Variable Costs = $75,000 ; Total Fixed Costs = $25,000. Additionally, you figure that have you decided to work for an accounting firm, your annual salary would have been $120,000. Given the data as presented, what is the firm's Accounting Profit? 4. Using the data as presented in #3 above, what is the firm's Economic Profit? 5. Using the data as presented in #3 above, should the graduate quit the business and work for someone else (the accounting firm) instead? A simple yes or no answer would be sufficient. 6. A competitive firm's Total Fixed Costs continue to diminish as output expands. True or False? 7. The vertical distance between a firm's TC and TVC is its own TFC; and the TFC stays constant or unchanged even as output expands or contracts in the short run. True or False