Short-run production

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1. Short-run production. a. What is the key feature of short-run production? b. One key assumption for the short-run production is diminishing returns to labor. Explain what it means, how is Malthus’s view regarding population and standard of living relate to this concept? What has Malthus missed when he made the prediction? c. What does diminishing returns related to the concepts Total Cost , Marginal Cost, Average Variable Cost, Average Fixed Cost, Total Product , Marginal Product, Average Product, etc? Use graphs to show. d. Evaluate the relevance of this assumption of diminishing returns to labor in modern production.

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