1. Which of the following statements is false in the short run?
a. Total fixed costs generally decline as output is increased.
b. Average total costs tend to be U-shaped.
c. As output increases, average variable costs converge to average total costs.
d. The marginal-cost curve intersects both the average-total- and average-variable-cost curves at their minimum points.
e. None of the above.
2. The long-run average-total-cost curve shows
a. the lowest cost combination of resources with which each level of output is produced when at least one resource is fixed.
b. the maximum cost combination of resources with which each level of output is produced when at least one resource is fixed.
c. the lowest cost combination of resources with which each level of output is produced when all resources are variable.
d. the set of minimum points of each short-run average-total-cost curve.
e. None of the above.