TRUE OR FALSE 1. Variable inputs are resources that can change in quantity depending on the level of output being produced. 2. The law of diminishing returns states that as the use of an input increases (with other inputs fixed), a point will eventually be reached at which the resulting additions to output decrease. 3. Stage 2 of labor is characterized by all product curves falling. 4. All cost that are paid in cash is called implicit costs. 5. If there is no production, total cost is zero