Example: Fast Food Production Complete the marginal product of labor column. Quantity of labor (workers) Total production of hamburgers per hour Marginal product of labor 55 120 190 230 240 245 When does diminishing marginal product set in? Assume the fixed cost per hour is $100 (to cover rent on the building and other overhead expenses such as electricity), each worker is paid $10 per hour, and each hamburger requires $1 of material inputs to produce. Complete the columns for fixed cost, variable cost, and total cost in the following table. Quantity of labor Production of hamburgers Fixed cost Variable cost Total cost 0 55 120 190 230 245 Example: Average, Fixed, Variable, and Marginal Costs Complete the average variable costs, average fixed costs, average total costs, and marginal cost columns in the table below. Quantity of toys produced in thousands) Variable costs of production Fixed costs of production (per hour) Total costs of production Average variable cost (VC/ Average Average fixed total cost (FC/Q) (TC/Q) cost Q] Marginal cost of production ATC/AQ $30 100 30 30 135 1. At what rate of production is average total cost at a minimum? 2. Why is it important for a company to know what its average total cost per item is? 3. Why does average fixed cost always fall