3. The marginal product of input 1 derived from the production function y=min[az 1, bz 2], diminishes for increases in input 1. 4. If the average product is declining, then average total cost must be ...

curves of individual firms is not the long run supply curve for the industry. Answers: 1.F 2.F 3.T 4.F 5.T. 3. Short Questions 1. An industry has 50 identical, perfectly competitive firm. Each firm ...