Q1. Describe the idea of an iso-cost line.
Q2. Illustrate the term factor prices?
Q3. Describe the idea of produce’s equilibrium.
Q4. Illustrate the meaning of the term returns to scale?
Q5. Describe the idea of a homogeneous production function and describe how the concept of returns to scale can be described with that idea.
Q6. When APL drops, MPL should be below it. True or false? Validate.
Q7. The average and marginal products are equivalent when average product is maximum. Illustrate.
Q8. If w = r and MPL > MPK, is the firm operating efficiently? Explain why or why not?
Q9. In law of variable proportions, which phase will the producer choose for production?
Q10. Describe the meaning of CRS?