1. What is the law of diminishing marginal product? What causes it?

2. A firm's total product of labor curve is represented by the following data: 1 worker can produce 4 units of output; 2 workers, 10 units; 3 workers, 17 units; 4 workers, 25 units; 5 workers, 30 units; 6 workers, 35 units; 7 units, 38 workers; 8 workers, 39 units; 9 workers, 38 units. What is the marginal product of the seventh worker? When does the law of diminishing marginal product set in? Under these circumstances would you ever choose to employ mine workers?

3. Explain why some costs are considered to be variable and some fixed. How does time enter into the definition?