Write TRUE or FALSE after the number of each statement 11 1

Write TRUE or FALSE after the number of each statement (11) - (16): 11) If the last workers’ Marginal Product is NEGATIVE, total product must be falling. 12) All production functions show increasing marginal returns due to specialization of labor. 13) Under Perfect Competition the firm’s short run supply curve is its short run average cost curve. 14) Under Perfect Competition if firms are making positive profits, new firms will enter the industry. 15) Under Perfect Competition firms cannot be earning negative profits in the long run. 16) Under Perfect Competition the industry has a FLAT market demand curve.

Solution

11. True

12. False

13. False.(A perfectly competitive firm\'s supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve.)

14. True

15. True

16. True