True or False (Put āTā in parentheses for correct ones and āFā in parentheses for wrong ones; 2 points for each question, 10 points in totalļ¼
5. It is possible to have decreasing marginal products for all inputs, and yet have increasing returns to scale. ( T )
6. A profit maximized firm is also cost minimized. ( T )
7. In long-run equilibrium of a competitive industry, no firm will be losing money. ( T )
8. The demand curve
3
q p p ( ) 12 ā
=
has a constant price elasticity. ( T )
9. A monopoly will never provide a Pareto efficient level of output. ( F )