• If the average cost function is 3 + 2Q, where Q is the level of output:

a. What is the total cost?

b. What is the fixed cost?

c. What is the marginal cost?

d. Does the production technology exhibits increasing returns to scale, constant

returns to scale or decreasing returns to scale?

• There are 100 identical firms in the market, and each firm has the no fixed cost, and its average cost is 5Q.

a. What is the individual firm's supply curve?

b. What is the market supply curve?

• The firm has the production function Q = K L , where Q is the output, K is the amount of capital and L is the amount of labor used.

a. What is the marginal product of capital?

b. Show that the production technology has constant returns to scale.