Please list out and answer the following questions:

Q1. Explain the difference between short run cost and long run cost? In the long run are there any fixed costs? Please explain.

Q2. What is the difference between marginal cost and average cost?

Q3. If average cost is increasing, what do we know about marginal cost? (Meaning what is its value in relationship to average cost?)

Q4. Explain the law of diminishing marginal returns in relation to the production of a good.Explain how diminishing marginal returns affect marginal cost?

Q5. Explain how each of the following will affect average fixed cost and average variable cost.

a.New union agreement increases hourly pay

b.Local government imposed an annual lump-sum tax per plant.

c.New steel-making technology increases productivity of every worker.