1. Which of the following statements is true about the short run and the long run?
1) The long run refers to a production planning period of longer than one year.
2) In the long run all inputs are variable; in the short run at least one input is fixed.
3) In the long run all costs are fixed; in the short urn some costs are fixed.
4) The short run is a period of time less than 6 months.
2) Economists typically refer to the short run as a period of time in which the firm does not have sufficient time to change the amounts of any of its inputs.
2. When marginal product is rising we know that
1) total product is increasing at an increasing rate.
2) total product is increasing at a decreasing rate.
3) total product is decreasing at an increasing rate.
4) total product is decreasing at a decreasing rate.