1)The marginal cost of a widget is the most valued alternative use of the resources that were employed to produce the widget.

A. TrueB. False

2)If marginal cost is rising, average total cost must be rising.

A. TrueB. False

3)The marginal product of labor is the extra output produced when an extra worker is hired.

A. TrueB. False

4)The average-marginal rule states, in part, that when the marginal value is less than the average value, the average will decrease.

A. TrueB. False

5)By the "short run" we mean a period of time that is so short that all resources used by the firm are fixed.

A. TrueB. False

6)If the long-run average cost curve is U-shaped, then it is because of diminishing marginal productivity.

A. TrueB. False

7)In the short run, as output expands, average total cost rises and then declines.

A. TrueB. False

8)In the long run, all costs are variable.

A. TrueB. False

9)In the short run, total fixed cost can exceed total variable cost.

A. TrueB. False

10)A firm is earning a normal profit when its total revenue and total cost are equal.

A. TrueB. False