True or false: microecon help/check answers?

Question

true or false: explain

a. ??

b. true i think?

c. true? i'm kinda unsure about what this means, but i'm thinking like competitive market?

d. false

e. true i think

f. true i think

g. i don't know what this means

a. Diminishing returns begin to occur when the total product curve reaches a maximum.

b. A firm should produce at a point where the marginal product curve reaches a maximum.

c. When allocating a productive resource across different production activities, we want the marginal product to be identical across each activity.

d. In the short run all inputs of production can be varied.

e. The long run marginal cost curve always intersects the long run average cost curve at a minimum.

f. Average cost is falling as long as the marginal cost curve lies below the average cost curve .

g. The total welfare in a monopoly is higher than in a competitive market.

Answer 1

a. false.  negative returns occur when the total product curve reaches a maximum

b. false, they should produce at a point where the marginal benefit (ie price) equals the marginal cost

c. false, we want the ratio of marginal product to price to be equal

d. false

e. true, before they intersect, MC is below AC, and after, AC is above MC.  Since MC affects AC, it must be that MC intersects AC at a minimum.

f. true, each unit costs less than the average to produce, so it is dragging the AC down

g. false, total welfare = consumer + producer surplus.  since the monopolist produces below the point where MC intersects the demand curve, there is not as much surplus as in the competitive market, because there are still some people who would pay more than marginal cost