1)In the following market,

Workers Output Marginal Product Total Cost Average Total Cost Marginal cost

0 0

1 20

2 50

3 90

4 120

5 140

6 150

7 155

a)Fill the column for marginal product. Can you explain diminishing marginal product based on those numbers?

b)A worker cost $60 a day, and the firm has fixed cost of $100. Use this information to fill in the column for total cost.

c)Fill in the column for average total cost.

d)Fill the column for the marginal cost.

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