(Answered) Explain the relationship between a firms short-run

Economics

1. Explain the relationship between a firm's short-run production function and its short-run cost function. Focus on the marginal product of an input and the marginal cost of production.

2. Use the model of perfect competition described in this chapter to explain, illustrate, or elaborate on the following statements.

a. "Increasing competition from new firms entering the market is good because it means one is in good business."

b. "One important difference between an entrepreneur and a manager is that the former gets into a market before demand increases, while the latter gets into the market after the shift."

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