Question 1:
a) Describe the idea of short run costs.
b) Describe the concept of TFC and TVC.
c) Explain why does TFC encompass a positive vertical intercept?
Question 2:
a) Deduce the short run total cost curve of a firm.
b) Describe why it is concavo-convex.
c) What would be the value of TC if no output is generated?
Question 3:
a) Describe the idea of AFC and AVC.
b) How would you deduce the AFC curve?
c) Illustrate the properties of the AFC curve?
Question 4:
a) Describe the idea of AVC.
b) How would you deduce the AVC curve?
Question 5:
a) Describe the derivation of the short run AC curve.
b) Explain why do AC and AVC come closer and closer to one other?