Answer the following short questions based on Producer 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.

(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?