(Revised) Please be specific and detailed in answering each of the discussion questions below. (Note: Number of pages to answer all questions, if required, should be no more than 7 pages) Finally, please list my questions before each of your detailed responses so I can follow along with clarity.
1. Discuss in detail what are the differences between short and long run costs?
2. For the short run, discuss what the relationship is between Cost Theory and Production Theory and the Concept of Diminishing Returns?
3. What is diminishing returns and how does it shape production and cost curves?
4. Discuss what the relationship is between short run cost curves and long run cost curves?
The solution answers the question(s) below.