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1. (50 marks) True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of...

1.

True/False/Uncertain

Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.)

A) Firms typically make investment choices over a small time horizon when profit maximizing.

B) The Cobb-Douglas production function can exhibit increasing, decreasing, or constant returns to scale.

C) An isoquant represents every point of economically efficient production for a given quantity.

D) In the short-run, the marginal product of labor is equal to the slope of the production function (assuming only capital and labor as inputs).

E) A firm’s production function is ordinal in nature, not cardinal.

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