1) Distinguish between profits in an accounting and in an economic analysis context.

2) What is the relationship of a firm's marginal revenue and marginal cost when the firm is maximizing profits and why is this so?

3) Explain the difference between fixed and variable cost as it relates to production. What is the difference between the short run and the long run?

4) What is the difference and connection between marginal, average, and total cost and physical product?