:If the Marginal Value Product is more than Price of the input, then to maximize profits 16 II a. Variable input must be decreased b. All statements are incorrecto c. Variable input must be increased O .d. Fixed input must be increased O Market failure can be best defined as a situation where 11 100 a. Markets enable buyers to gain utility O b. Markets allocate resources inefficiently .c. Market enables sellers to make profits O .d. Markets encourage people to take risk o A feasible production combination for a firm producing two outputs must be 18 with hollarial 1.00 TAAL a, on the PPF at a point halfway between the two aweso b. Only on the production possibilities frontier (PPF) Only inside the PPFO d. On the production possibilities frontier (PPF) or inside the PPF Suppose the firm's total costs per month equal 50000+100, where Q is the number of units of output produced per month. If the firm produces 100 units of output per month, its average fixed cost and average variable cost are 19 10 a. 510 and 10 b. 500 and 20 C. 490 and 10 d. 500 and 10 A seller in a perfectly competitive market would increase his profit in the short run by 20 1.00 a. conducting an aggressive advertising campaign for his producto b. increasing his selling price above the market price o c. None of the statements are true o d. decreasing his selling price so he sells more output