QUESTION 5 The assumption that the marginal product of labor decreases as the labor input increases implies that O the production function is concave. C output decreases as the labor input increases. the wage increases as the labor input increases. O the production function shifts upward. QUESTION 6 As the quantity of labor increases, the marginal product of capital O increases. O is constant. O decreases. O may either increase or decrease.QUESTION 7 When the representative firm maximizes profits the marginal product of labor equals the wage. production is at its maximum. O the slope of the production function is at its flattest. labor costs are minimized. QUESTION 8 If there are increasing returns to scale in production O increasing capital and labor in the same proportion increases output. increasing capital with labor held constant reduces output. O increasing capital and labor in the same proportion reduces output. this is the same as constant returns to scale