Problem: Indicate whether each of the following statements is true or false. Explain your answer.
A. If the marginal product of capital decreases as capital usage grows, the returns to capital are decreasing.
B. The marginal rate of technical substitution will be affected by a given percentage increase in the marginal productivity of an input.
C. Marginal revenue product represents the minimum revenue amount required to expand usage.
D. Linear isoquants describe production systems where inputs are perfect complements.
E. Decreasing returns to scale and declining average costs are indicated when Q< 1.