True/ False. explain why

Question 1. A firm in a perfectly competitive market has a production function represented as Q= f(l,k)=5L⁴+ 5k⁴. This implies that the firm's production function exhibits constant returns to scale. (2 points)

Question 2. In business sunk costs are unavoidable and cannot be recouped once they are incurred. (2 points)

Question 3. The distribution of the tax burden between producers and consumers depends on whether the tax is levied on producers or consumers. (2 points)

Question 4. A change in income of the consumer will lead to a change in the slope of the budget line by causing it to rotate around the intercept. (2 points)

Question 5. When there is an increasing marginal returns to labor, total product increases at an increasing rate. (2 points)

Question 6. A risk-averse person is indifferent between the certain amount of wealth and the expected value of his wealth to the lottery. (2 points)

Question 7. For Leontief preferences, the consumer's optimum consumption bundle occurs at the elbow or kink of the indifference curve. (2 points)

Question 8. Prices are determined in a perfectly competitive market by the interaction of demand and supply and so the perfectly competitive firm sets the price. (2 points)

Question 9. The marginal productivity of labor and capital is negative in the uneconomic region of production. (2 points)

Question 10.If the cross-price elasticity of demand between two goods is 'zero', then the two goods are perfect substitutes.(2 points)