1. Figure 1 shows the production function of a firm.YВY2Y1XX1X2a) What are the variables along (i) of the X axis?(ii) Y axis?b) Does the firm operate in the short term or long term?c) Referring to the diagram above, what is the level of input where(i) firms experiencing increased marginal output?(i) does the firm experience a declining marginal output?(i) the firm achieves maximum marginal output?(iv) the firm achieves a blank marginal output?

1. Figure 1 shows the production function of a firm. Y Y2 Y1 X1 X2 a) What are the variables along (i) of the X axis? (ii) Y axis? b) Does the firm operate in the short term or long term? c) Referring to the diagram above, what is the level of input where (1) firms experiencing increased marginal output? (ii) does the firm experience a declining marginal output? (ii) the firm achieves maximum marginal output?