(1) The following table gives total output or total product as a function of labor units used: Labor Total Product/Output NOVO UIAWN- 14 15 a. Define diminishing returns. ANS: b. Does the table indicate a situation of diminishing returns? Show your calculations and explain your answer. ANS: (2) A producer of hard disk drives for note book computers currently has a factory with two disk-processing machines, which it cannot change in the short run. Each of the machine costs $100 per day (the opportunity cost of the funds used to buy them). Each hired worker costs $50 per day. The relationship between output and the number of workers is as follows: L TFC TVC TC AFC AVC ATC MC 10 15 18 JOUAWN- 22 Fill in the column for total fixed costs (TFC), total variable cost (TVC), total costs (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC)