1. Explain the differences between a short-run and long-run production function.

2. Describe the key points in a short-run production function that delineate the three stages of production. Explain the relationship between the law of diminishing returns and the three stages of production.

3. Fill in the table

Output	Total Cost	Total Variable Cost	Total Fixed Cost	Marginal Cost	Average Cost	Average Variable Cost	Average Fixed Cost
0	40			-	-	-	-
1				40
2		68		28
3	128			20