Question: Question: 1 . Analyze two ( 2 ) relationships between a firms short run production function and its short run cost function by focusing on

Question:

1 .

Analyze two

(2)

relationships between a firms short run production function and its short run cost function by focusing on marginal product of an input and the marginal cost of production?

2 .

If it were not for the law of diminishing returns, a firms average cost and average variable cost would not increase in the short run. Elaborate to agree or disagree with this statement

3 .

because of economic of scale, it is sometimes more cost effective for a firm to operate a large plant at less than maximum efficiency than a small plant at maximum efficiency. Elaborate two

(2)

point to agree or disagree with the statement.

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