Indicate whether each of the following statements is true or false. Explain why. A. When the law of diminishing returns takes effect, a firm's average product will start to decrease. (2) B. A decision maker must always use the historical cost of raw materials in making an economic decision. (2) C. Decreasing returns to scale occurs when a firm has to increase all its inputs at an increasing rate to maintain a constant rate of increase in its output. (2) D. A linear short-run production function implies that the law of diminishingreturns does not take effect over the range of output being considered. (2) E. Stage I of the production process ends at the point where the law of diminishing returns occurs. (2) F. The marginal cost curve always intersects the average cost curve at the average cost's lowest point. (2) G. The portion of the long-run cost curve that is horizontal indicates that the firm is experiencing neither economies nor diseconomies of scale. (2)