PART B: True/False Indicate whether the statement is true or false. 1. (1 point) All inputs are fixed in the short run. 2. (1 point) When the average product exceeds its marginal product, the average product is increasing. (1 point) Stage II of production begins at a level of output, where the average product of the variable input is at a maximum, and ends where the marginal product of the variable input is equal to zero. 4. (1 point) The short run period is the time period which is sufficient enough to allow a firm to alter its plant capacity and its factor of production 5. (1 point) If the short run average variable cost is decreasing, this indicates that average total cost is maximum. 6. (1 point) The cost of raw materials used to produced bread in bakery is an example of an implicit cost 7. (1 point) Marginal Cost is the change in average total cost as a result in producing one more units of output. 8. (1 point) The perfectly competitive market allows very easy entry and exit of firms in the market. 9. (1 point) Supernormal profit is obtained when average revenue is greater than average cost. 10. (1 point) Monopoly can influences the price of the product is known as price taker. 11. (1 point) The Copper industry is an oligopoly firm. 12. (1 point) In an oligopoly, a kinked demand curve explains a price rigidity