3. The marginal product of input 1 derived from the production function y=min[az 1, bz 2], diminishes for increases in input 1. 4. If the average product is declining, then average total cost must be ...

Short Questions 1. An industry has 50 identical, perfectly competitive firm. Each firm has a short run cost function given by: C=192+12q 2. What are the firm and industry short run supply functions?