Answer the following short questions based on Consumer Theory:

(a) Suppose a firm's production quantity Q depends only on labour L. Specifically, Q = 5 L. Sketch this production function on a graph. Add two points to the graph - point A, which is a technically efficient point; and point B which is technically inefficient.Give one example of why a firm might operate at point B.

(b) Calculate the formula for average product AP and marginal product MP.

(c) Explain why AP must be increasing over the region of inputs where MP > AP.

(d) What is the difference between Diminishing Marginal Returns and Diminishing Total Returns (e) What is different about the decisions firms have to make in the short run and the long run?