1. What is the difference between fixed costs and variable costs?'

1. Are there fixed costs in the long run? Explain briefly.

1. Are fixed costs also sunk costs? Explain.

1. What are diminishing marginal returns as they relate to costs?

1. Which costs are measured on per-unit basis: fixed costs, average cost, average variable cost, variable costs, and marginal cost?

1. How is each of the following calculated: marginal cost, average total cost, average variable cost?

1. What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?

1. What is a production technology?

1. In choosing a production technology, how will firms react if one input becomes relatively more expensive?

1. What is a long-run average cost curve?