Firm Measures: Productivity, Costs, and Profits | Labor Total Product (TP) Fixed Cost (TFC) Variable Cost (TVC) 0 $8000 $ 0 16000 $8000 $ 72,000 AWN-O 50000 $8000 $ 92,000 60000 $8000 $172,000 64000 $8000 $312,000 a. Solve for average product (AP) in each row, except for where labor = 0. b. Solve for marginal product (MP) in each row, except for where labor = 0. c. Which worker(s) are in the region of diminishing marginal returns? d. Which worker(s) are in the region of increasing marginal returns? e. Of the regions from parts c and d, state in which region(s) the firm will choose to produce. EQUATIONS Marginal Utility (MU) = Change in Total Utility (TU) / Change in Output Marginal Product (MP) = Change in Total Product (TP) / Change in Labor Average Product (AP) = Total Product (TP) / Labor Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC) Average Fixed Cost (AFC) = Total Fixed Cost (TFC) / Total Product (TP) Average Variable Cost (AVC) = Total Variable Cost (TVC) / Total Product (TP) Average Total Cost (ATC) = Total Cost (TC) / Total Product (TP) = Average Fixed Cost (AFC) + Average Variable Cost (AVC) Marginal Cost (MC) = Change in Total Cost (TC) / Change in Total Product (TP) = Change in Total Variable Cost (TVC) / Change in Total Product (TP)