Q1. Deduce the isocost line of a producer where he uses two inputs: capital and labor.
Q2. Illustrate that output maximization and cost minimization for a firm would provide us the similar answer. Describe.
Q3. Describe the relationship between the APL and MPL.
Q4. Describe the different concepts of returns to scale with the assist of an expansion path.
a) Define the term expansion path.
b) A firm employs two inputs and a homogeneous production function.
Illustrate that the expansion path is a linear line via the origin.
Q6. Describe the difference between the diminishing returns to a variable input and diminishing returns to scale.
Q7. Trace out the basic difference between returns to scale and returns to the variable factor.
Q8. Describe the concept of diminishing marginal rate of technical substitution and the convexity of iso-quants.