Production And Costs

Can you identify the sets of inputs that will lie on the isoquant $q = 50$?

Explain the concept of a production function.

What is the total product of an input?

What is the average product of an input?

What is the marginal product of an input?

Explain the relationship between the marginal products and the total product of an input.

Explain the concepts of the short run and the long run.

What is the law of diminishing marginal product?

What is the law of variable proportions?

When does a production function satisfy constant returns to scale?

When does a production function satisfy increasing returns to scale?

When does a production function satisfy decreasing returns to scale?

Briefly explain the concept of the cost function.

What are the total fixed cost, total variable cost and total cost of a firm? How are they related?

What are the average fixed cost, average variable cost and average cost of a firm? How are they related?

Can there be some fixed cost in the long run? If not, why?

What does the average fixed cost curve look like? Why does it look so?

What do the short run marginal cost, average variable cost and short run average cost curves look like?

Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?

At which point does the SMC curve cut the SAC curve? Give reason in support of your answer.