I just need an answer check on these true/ false questions, PLEASE:

1. A principal-agent problem occurs when managerial decisions are inconsistent with the firm’s revenue maximizing objective.
False

2. A firm making less than a normal profit would have an economic loss.
True

3. An inferior good is a good whose demand decreases as its prices decreases.
False

4. Assuming that crude oil is an input to automobile tires as well as to gasoline, an increase in the price crude oil would result in a reduction in the demand for tires while the equilibrium price of tires may increase or decrease.
True

5. Other things remaining unchanged, a reduction in income would make demand for a normal good less price elastic.
True

6. The cross price elasticity demand for a good with respect to the price of a complementary good is negative.
True

7. When the marginal product of labor is greater than its average product, the average product decreases with each additional unit of labor.
False

8. The slope of an isoquant is equal to the ratio between the price of labor and the price of capital.
False

9. If the ratio between the price of labor and the price of capital (w/r) is greater than the ratio between the marginal product of labor and the marginal product of capital, the firm should hire more capital.
True

10. Normally the ratio between the price of a variable input and the marginal product of that input is equal to marginal revenue product.
True

11. When labor is the variable input the ratio between wage and the marginal product of labor is equal to marginal cost.
True

12. If the price falls below the average variable cost the firm shuts down in the short run.
False

13. When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to its MC but it is not necessarily equal its ATC.
False

14. The price a profit maximizing monopoly charges is always greater than its marginal cost as well as it MR.
True

15. As new firms enter a monopolistically competitive market, the demand faced by each competing firm becomes more elastic.
True

16. The long-run equilibrium of a monopoly is characterized by its price being greater than its MR and MC but not necessarily greater than its ATC.
False

17. A monopolistically competitive firm sets its price equal to its MR, but not equal to its MC.
False

18. We say that the long-run equilibrium of a monopolistically competitive firm reflects excess capacity because its MC is below its price.
True

19. In a duopoly with a zero marginal cost, according to the Cournot model, at equilibrium each firm produces exactly ½ of the market demand at a zero price.
True

20. In the kinked demand curve model it is assumed that the demand faced by an oligopoly is more elastic when it lowers the price but less elastic when it raises the price.
True

21. A distinguishing characteristic of monopolistically competitive market is product differentiation.
True

22. The general explanation for the relative price stability in an oligopolistic market is the existence of some degree of decision interdependency among the firms in the market.
True

To check the answers for these true/false questions, we'll go through each statement and explain the reasoning behind the answer:

1. A principal-agent problem occurs when managerial decisions are inconsistent with the firm’s revenue maximizing objective.
False. A principal-agent problem occurs when the interests of the principal (owner) and the agent (manager) are not aligned, leading to conflicts of interest. It does not necessarily have to do with revenue maximization.

2. A firm making less than a normal profit would have an economic loss.
True. Normal profit is the minimum level of profit required to keep a firm in operation. If a firm makes less than normal profit, it is not covering all its costs and would have an economic loss.

3. An inferior good is a good whose demand decreases as its prices decreases.
False. An inferior good is a good for which demand decreases as income increases, not as prices decrease.

4. Assuming that crude oil is an input to automobile tires as well as to gasoline, an increase in the price of crude oil would result in a reduction in the demand for tires while the equilibrium price of tires may increase or decrease.
True. An increase in the price of a key input like crude oil would likely result in a reduction in the demand for goods that use that input, such as automobile tires. The effect on the equilibrium price of tires would depend on the relative changes in supply and demand.

5. Other things remaining unchanged, a reduction in income would make demand for a normal good less price elastic.
True. Price elasticity measures the responsiveness of demand to changes in price. When income decreases, consumers tend to be more price-sensitive and demand for normal goods becomes less elastic.

6. The cross-price elasticity of demand for a good with respect to the price of a complementary good is negative.
True. Cross-price elasticity of demand measures the responsiveness of one good's demand to changes in the price of a related good. For complementary goods, a decrease in the price of one good would lead to an increase in the demand for the other, resulting in a negative cross-price elasticity.

7. When the marginal product of labor is greater than its average product, the average product decreases with each additional unit of labor.
False. When the marginal product of labor is greater than its average product, it means that each additional unit of labor is more productive than the average. In this case, the average product increases with each additional unit of labor.

8. The slope of an isoquant is equal to the ratio between the price of labor and the price of capital.
False. The slope of an isoquant represents the trade-off between inputs, not their prices.

9. If the ratio between the price of labor and the price of capital (w/r) is greater than the ratio between the marginal product of labor and the marginal product of capital, the firm should hire more capital.
True. The firm should hire more of the input that provides more marginal product per dollar spent. In this case, if the ratio of the marginal products is lower than the input price ratio, it implies that the firm is not utilizing its inputs efficiently and should hire more of the cheaper input.

10. Normally the ratio between the price of a variable input and the marginal product of that input is equal to the marginal revenue product.
True. The marginal revenue product is equal to the price of the variable input multiplied by the marginal product of that input.

11. When labor is the variable input, the ratio between wage and the marginal product of labor is equal to marginal cost.
True. The ratio of the wage to the marginal product of labor is the marginal cost of labor.

12. If the price falls below the average variable cost, the firm shuts down in the short run.
False. If the price falls below the average variable cost, the firm would still operate in the short run as long as it can cover its variable costs. It may incur a loss, but shutting down would only be considered if the price falls below the average total cost.

13. When a perfectly competitive firm is producing at its profit maximizing level of output, its marginal revenue is equal to its marginal cost but not necessarily equal to its average total cost.
False. In perfect competition, a firm maximizes its profit by producing at the quantity where marginal cost equals marginal revenue, which is also equal to average total cost in the long run.

14. The price a profit-maximizing monopoly charges is always greater than its marginal cost as well as its marginal revenue.
True. The profit-maximizing monopoly charges a price that is greater than its marginal cost because it enjoys market power and can set prices higher than the competitive level.

15. As new firms enter a monopolistically competitive market, the demand faced by each competing firm becomes more elastic.
True. In a monopolistically competitive market, firms have differentiated products. As new firms enter, they provide more substitutes for consumers, making each firm's demand curve more elastic.

16. The long-run equilibrium of a monopoly is characterized by its price being greater than its marginal revenue and marginal cost but not necessarily greater than its average total cost.
False. In the long-run equilibrium of a monopoly, the price is equal to its marginal cost but greater than its average total cost.

17. A monopolistically competitive firm sets its price equal to its marginal revenue, but not equal to its marginal cost.
False. A monopolistically competitive firm sets its price and quantity to maximize profit, where marginal revenue equals marginal cost.

18. We say that the long-run equilibrium of a monopolistically competitive firm reflects excess capacity because its marginal cost is below its price.
True. In the long-run equilibrium of a monopolistically competitive firm, the price is higher than the marginal cost, indicating excess capacity or inefficiency.

19. In a duopoly with a zero marginal cost, according to the Cournot model, at equilibrium each firm produces exactly ½ of the market demand at a zero price.
True. In the Cournot model, firms compete by choosing quantities. In the case of zero marginal cost, each firm would produce half of the market demand to maximize its profit.

20. In the kinked demand curve model, it is assumed that the demand faced by an oligopoly is more elastic when it lowers the price but less elastic when it raises the price.
True. The kinked demand curve model assumes that rivals will not follow price increases but will match price decreases. This creates a kink in the demand curve, making it more elastic for price decreases and less elastic for price increases.

21. A distinguishing characteristic of a monopolistically competitive market is product differentiation.
True. Product differentiation is a distinguishing characteristic of monopolistically competitive markets, where firms produce slightly differentiated products to create a sense of uniqueness.

22. The general explanation for the relative price stability in an oligopolistic market is the existence of some degree of decision interdependency among the firms in the market.
True. In an oligopoly, firms take into consideration the potential reactions of their competitors when making pricing and production decisions. This interdependency can lead to relative price stability.