J: DDNDI II I If I [El ll ll'l Cl . I' ElElSESllllilll W I. True/False: Suppose that in the graph showing L (in the x-axis) and MP1. (in the y-axis), the MP1. function is a horizontal line (zero slope]. This means that the production function is increasing. 2. True/False Suppose that to mow a lawn you need a lawn-mower and a leaf-blower. The shape of the isoquant corresponding to this type of production is a linear downward sloping line [suppose lawn- mowers are in the x-axis and leaf-blowers in the y-axis]. 3. True] False A production function is given by: F (L, K) = Liz + %. Then, MPL is increasing, MPK is decreasing and the function exhibits decreasing returns to scale. 4. Suppose the Total Cost Function is increasing at a decreasing rate. The corresponding MPL and MC functions are: a. MPL is upward sloping, MC is downward sloping b. MPL is upward sloping, MC is upward sloping c. MPL is downward sloping, MC is downward sloping d. MPL is downward sloping, MC is upward sloping 5. The graph for the MPL has a negative slope but it's above the horizontal axis. This means that: a. each additional unit of labor diminishes total output h. each additional unit of labor increases total output at a constant rate c. each additional unit of labor increases total output at an increasing rate (1. each additional unit of labor increases total output at a decreasing rate 6. Suppose that after hiring a certain number of workers, the production function starts to decline. This means that the MPL is: a. Positive b. Negative c. marginal physical product of labor is positive but declining d. marginal physical pro duct of capital exhibits diminishing returns to scale 7. If the graph of a production function is an upward sloping linear function, then the slope of MPL is: a. Positive b. Negative c. Zero d. Cannot be determined