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Isoquants, marginal rate and average product

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Which is False and which is True?

1.A change in input prices shifts the isoquant map
2.Convex isoquants mean that the marginal rate of technical substitution decreases as a firm substitutes labor for capital
3. A change in cost shifts the isocost curve
4. At the optimal input choice, the rate at which the firm can substitute labor for capital in production is equal to the rate at which the firm can substitute labor for capital in the market
5. A firm plans in the long run and operates in the short run
6. In the short run, a firm can change some but not all of its inputs
7. In the long run all inputs are variable
8. In the short run all inputs are fixed
9. If average product is increasing, then marginal product must be greater than average product
10.Economies of scale exist when long run average cost decreases as output increases

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Solution Summary

The expert examines isoquants, marginal rates and average products.

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