4. Using the production function for Adam's Recycle-Bicycle Shop above and knowing that he has

fixed cost of production equal to $2,000 and his variable cost are $400 per worker, calculate

the relevant cost data for Adam.

a. Plot the total cost, total variable cost, and total fix cost in one figure and the average

total cost, average fixed cost, average variable cost, and marginal cost in other figure

b. Why does average fixed cost fall continuously?

c. Why may average variable cost fall and then definitely rise?

d. Why does average total cost fall and then rise?

e. How does marginal cost of production relate to the marginal product of each worker?