Among the many cold beverage vendors in the local farmer's market last year, Elton's Caribbean smoothies were a big hit. This year Elton intends to hire some help in his smoothie operation. The table below shows Elton's smoothie production on a typical day in the farmer's market. He can sell as many smoothies as he wants at $6 each, and he will pay his workers a wage of $90 a day.

No. of Workers

Total Product

(smoothies sold per day)

0

0

2

52

4

92

6

122

8

146

10

158

a.Add two columns to the table. Label the third column "Marginal Product." Label the last column "Marginal Revenue Product." Calculate the values for the Marginal Product and Marginal Revenue Product columns based on the information provided. (Hint: Marginal revenue product = marginal product x selling price per unit).

b.Based on economic production theory, how many workers should Elton hire and why?

c.Draw one correctly labeled graph that illustrates Elton's workers total product versus the marginal product curve. Briefly explain the reason for the difference in the shapes of the two curves.

d.Draw a correctly labeled graph to show Elton's workers marginal revenue product. At what point does Elton experience diminishing returns per worker. Explain your evidence.