First =4 Last = 26

2. The marginal product of labor schedule for a firm is given below for alternative levels of labor. Calculate the total product schedule, Q. for each level of labor employed. Also calculate the average product schedule, APL. a. Produce a graph of the production function. ie. a graph of Q on the vertical axis and L on the horizontal axis. Identify on your graph where diminishing returns to labor set in. b. Produce a graph of the marginal product and average product schedules. Put AP, and MP_ on the vertical axis and L on the horizontal axis. C. Calculate the MC schedule for the firm if the firm faces a price of labor (the wage) of w=SFirst and w=$(First+Last), where First=# of the letter corresponding to your first name and Last=# of the letter corresponding to your last name. For instance, B=2, so the wage, w. for the TVC (w=First) column is w=$2. That is, the producer has to pay a wage of $2 per unit of labor. Produce a graph of the two MC schedules as a function of Q. (graph MC on the vertical axis and Q on the horizontal axis for each w. Use the xy graph. The two marginal cost curves should be on the same graph.) MP_=marginal product of labor. (I am providing the columns for TVC because you will use it to calculate MC).Labor MPL Q=output APL TVC TVC MC MC (w=First) (w=First+Last) (w=First) (w=First+Last) 0 XX 0 X X X 15 2 19 21 4 17 15 6 13 11 8 9 9 7 10 5 d. Explain what happens to marginal cost when the price of labor increases