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Assessment for Learning Course for PSHE Teachers (Part 2) Workshop for Economics Teachers Assessment for Learning True-False Questions Whether the following statements are true or not? Justify your answer. Statement 1 If there is at least one variable factor, it is a long-run period. Explain: 2 Variable factors are the factors of production whose output level increases when input increases. Explain: 3 Machinery must be a fixed factor. Explain: 4 In long run, all factors are variable factors. Explain: 5 When marginal product decreases, total product must decrease. Explain: 6 Marginal product will only decrease when more variable factors are employed Explain: 7 The law of diminishing marginal returns implies that firms will suffer loss. Explain: 8 The scale of production may change in short run. Explain: 9 Economies of scale explain why marginal product decreases in long run. Explain: 10 Optimal scale means long run total cost is at its minimum. Explain: T/F