Please answer all questions. Explain every step! Every detail! No assumptions!

4. Newton said "If I have seen further, it is by standing on the shoulders of giants . How is this quote related to the returns to technological progress (A)? and why is (A) diminishing returns?

8. Define fixed costs from innovation and give 3 real-life examples.

11. Total Cost function: = + . Calculate the Average Cost.

13. What is the price when there's perfect competition? Using this result, do you see an incentive for innovation? Why?

17. Why is imperfect competition needed for innovation?