Q1) As a producer, how do you know you are at a point of diminishing marginal production? (3 marks)

Q2) 3. There are two goods A and B, with prices PA and PB respectively. Carry out a graphical Slutsky decomposition when the price of A falls from PA to PA1. Graphically derive the compensated and uncompensated demand curves. (7 marks)

Q3)5. Given q = 10k + 5l. What kind of returns to scale does this production function exhibit? (2marks)