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A clothing company has the following short-run production and cost schedule: Labour Total Product Marginal Product Average Product (Workers per day) (Pants per day)
A clothing company has the following short-run production and cost schedule: Labour Total Product Marginal Product Average Product (Workers per day) (Pants per day) (Pants per day) (Pants per day) Variable Fixed Total Cost (5) Costs (5) Costs (5) 1 50 30.00 0.00 30.00 15.00 2 120 30.00 25.00 3 200 30.00 30.00 4 260 30.00 45.00 5. 300 30.00 65.00 Average Average Marginal Average Cost (5) Fixed Cost (5) Variable Cost (5) Cost (5) a. Fill in the table. (5 marks) b. The firm decides to hire two workers. Have diminishing returns set in at this point? Explain. (2 marks)
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