1. Use a numerical example to illustrate and explain the concept of the marginal product of labour. (Draw the graph)

2. Assume labour is the only variable input. Explain the implications to a firm marginal returns and marginal cost when it is experiencing a decreasing marginal product of labour.

3. Explain, with the aid of graph(s), the relationship between marginal cost and average total cost. (Draw the graph)

4. Assume ceteris paribus. Use the profit equation to explain at which stage of the marginal and average total cost relationship does a firm's profit decline.

5. Use graph(s) and/or table(s) to illustrate and explain the differences between the revenue curves of a price maker and a price taker. (Draw the graph)