(a) Suppose a firm's production quantityQdepends only on labourL. Specififically,

Q= 3L.Sketch this production function on a graph. Add two points to the

graph - pointA, which is a technically effificient point; and pointBwhich is

technically ineffificient. and offer one example of why a fifirm

might operate at pointB.

(b) Calculate the formula for average productAPand marginal productMP.

(c) Explain whyAPmustbe increasing over the region of inputs whereMP > AP.

(d) What is the difference between DiminishingMarginalReturns and Diminishing

TotalReturns

(e) What is different about the decisions fifirms have to make in the short run and

the long run?

how to solve these using producer theory?