Analysis of production level and costs Instructions Part I- Complete the following table related to an example of the theory of production by calculating the marginal product and the average product. After completing the table, answer each of the parts.

Number of Workers	Total Production	Marginal Product	Average Product
0	0
1	30
2	64
3	102
4	130
5	148
6	160
7	166
8	164

a. Prepare two graphs: in the first graph it represents the total production, in the other graph it represents the marginal production and average production. Explain in detail the relationship between each pair of curves. b. Explain in detail each of the three observed levels of marginal product. c. What influence does the law of diminishing returns have on production costs in the short run? Explain. Part II- Evaluate the economic efficiency and equilibrium of a company that has fixed costs of $80.00 and variable costs as indicated in the table.

Total Production	Fixed Cost	Cost Variable	Total cost	Fixed Average Cost (CPF)	Average Variable Cost (CPV)	Average Total Cost (CPT)	Marginal Cost (MC)
0		0
1		60
2		100
3		135
4		165
5		200
6		240
7		285
8		340
9		405
10		480

a. After completing the table, prepare a graph to represent the firm's total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable cost and total cost curves. b. Produces a graph for the CPF, CPV, CPT and CMg. Explain how it is calculated, the shape of each of these four curves, and the relationships between them. c. Explain how the location of each curve on the graph would be altered if the total fixed cost changed to $110.00 instead of $80.00.