8. a. FALSE A firm’s marginal product will start to decrease.
b. TRUE The increase in all of its inputs at an increasing rate will make up for the increase in output at a decreasing rate, thereby resulting in a constant rate of increase in output.
c. TRUE A linear short-run production function implies that output increases at a constant rate as the variable input is added to the production process.
d. FALSE Stage I ends shortly after this, when the already diminishing marginal product