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1. Explain the differences between a short-run and long-run production function.
2. Describe the key points in a short-run production function that delineate the three stages of production. Explain the relationship between the law of diminishing returns and the three stages of production.
3. Fill in the table
Output
Total Cost
Total Variable Cost
Total Fixed Cost
Marginal Cost
Average Cost
Average Variable Cost
Average Fixed Cost
0
40
-
1
2
68
28
3
128
20
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