1) Describe the cost function and explain the difference between a short-run and a long-run cost function.

2) Describe the elements of a cost schedule which can be derived total, fixed, and variable costs.

3) Compare and contrast the short-run cost function and the long-run cost function and explain why economies of scale is considered to be a long-run phenomenon.

4) Use the tools of calculus to derive the short-term average cost and average variable cost functions from the total cost function.

5) Describe the various forms of production functions that are used in statistical estimation of these functions.