Episode 5 provides the basis for producer behaviour. Discussion begins with concepts related to production process such as input and output, firm, plant and industry, and production time frame. Subsequently, production in the short run with a fixed input and a variable input will be discussed, together with concepts related to diminishing marginal returns and production levels. The last section examines production in the long run, involving the utilisation of two variable inputs. This production decision outcome in the long run is made based on the concepts of isoquant and isocost.