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Mark each of the following statements about a profit-maximising rm True or False. In each case give reasons for your answer and state any additional
Mark each of the following statements about a profit-maximising rm \"True\" or \"False". In each case give reasons for your answer and state any additional assumptions that you make. (a) The effect of a rise in the price of input 2' on the demand for input j is the same as the effect of a rise in the price of input j on the demand for input i. [4 marks] (b) A rise in the price of input 2' cannot be accompanied by an in- crease in the demand for input 2'. [4 marks] (c) The fIrm's supply curve is identical to the marginal cost curve. [4 marks]
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