1. A consumer has preferences represented by the utility function U(x₁,x₂)=10(x₁²+2x₁x₂+x₂²)50. For this consumer, goods 1 and 2 are perfect substitutes and indifference curves are downward-sloping............
2. Charlie's utility function is U(x , y)=xy².His marginal rate of substitution between x andydoes not change if you double the amount of both goods............
3. If there are two goods and the price of one good is reduced, while income and other prices remained constant, then the size of the budget set is reduced...........
4. If there are two goods, and if one good has a negative price and the other has a positive price, then the slope of the budget line will be positive..............
5. If there are constant returns to scale, then doubling the amount of any input will exactly double the amount of output...............
6. If the production function isf(x₁,x₂)=x₁x₂, then there are constant returns to scale...............
7. If there are increasing returns to scale, then average cost is a decreasing function of output................
8. It is possible to have decreasing marginal products for all inputs, and yet have increasing returns to scale...............
9. The marginal cost curve passes through the minimum point of the average fixed cost curve............
10. If a profit-maximizing competitive firm has constant returns to scale, then its long run profits must be zero
11. A firm has the production functionf(x,y)=x^2/3 y^1/3 when xis the amount of factorxused andyis the amount of factoryused. The slope of the isoquant is y=5x ..........
12. Automobile industry or airline industry are examples for monopolistic competition.........
13. MP of labor implies how much more output will we get per additional unit of labor, holding capital fixed............

14. The total short-run cost function of a company is given by the equationC=300+55Q. Then, marginal cost per unit produced is 55............

15. To solve for the cost-minimization problem, we find the point on the isoquant that has the highest associated isocost curve.........