2.  How can production be optimized or cost optimized?  How does output respond to change in quantity of inputs?  How does technology matter in reducing the cost of production?  How can the least cost combination of input be achieved?  Given the technology, what happens to the rate of return when more plants are added to the firm?

3. o ‘Production’ means a process by which resources are transformed into a different and more useful commodity or service. o Input is anything which a firm buy for use in its production & output is goods that come out of production.

4. o Fixed Input is one whose supply is inelastic for short-run. o Variable Input is one whose supply in the short-run is elastic. o Short-run & Long- run are the period involve in the production process.

5. o It state the technological relationship between input and output in the form of an equation, a table or a graph. o Q = ƒ (LB, L, K, M, T, t) LB: Land and Building, L: Labour, K: Capital, M: Raw Materials, T: Technology, t: Time

6. Production function with two variables Q = ƒ (L, K)

7. Qc = ƒ (K, L) Qc: The quantity of coal produce per unit time K : CapitalL: Labour

10. 10158223274316354387418447474500 9150212260300335367397424450474 8141200245283316346374400424447 7132187229264296324350374397418 6122173212245274300324346367387 5112158194224250274296316335354 4100141173200224245264283300316 387122150173194212229245260274 270100122141158172187200212224 1507087100112122132141150158 K L 12345678910

11. No. of Workers(N) Total Product (TP L ) (tonnes)Marginal Product (MP L )Avg Product (AP L ) Stages of Production (Based on MP L ) (i)(ii)(iii)(iv)(v) 124 1. Increasing returns 2724836 31386646 42167854 53008460 63848464 74627866 2. Diminishing returns 852866 95764864 106002460 11594-654 3. Negative returns 12552-4246

12. Total output (Tonnes) Labour

13. Marginal and Average Product