1. What is the significance between implicit and explicit costs in a firm.
Furthermore, what is the relationship between total product and marginal product, shown by the law of diminishing returns? Give a descriptive explanation.
a. Draw / Illustrate and explain the relationship between marginal cost, average variable cost and average total cost and how are these concepts intertwined with the law of diminishing marginal returns?
b. What is the difference between the short run and the long run and describe what curve is reflected of the long-run and why.
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