Manton Bakery is a company that bakes bread. Here is the relationship between the number of workers at the bakery and Manton’s output in a given day:

Workers Output of loaves Marginal product Average total cost Marginal cost 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 155

a. Fill in the column of marginal product. What pattern do you see? How might you explain it?

b. A skilled baker costs €100 a day, and the firm has fixed costs of €200. Use this information to fill in the column for total cost.

c. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do you see?

d. Now fill in the column for marginal cost. (Recall that MC = ΔTC/ΔQ.) What pattern do you see?

e. Compare the column for marginal product and the column for marginal cost. Explain the relationship.

f. Compare the column for average total cost and the column for marginal cost. Explain the relationship.