Labor	Output	Marginal Product	Average Product	Total Cost	Marginal Cost	Average Fixed Cost
A	0	0 cans	---	---		---	---
B	1	2 cans
C	2	7 cans
D	3	17 cans
E	4	23 cans
F	5	28 cans
G	6	29 cans

You are presented with the following table for the production of cans of red herring. Labor is your only variable cost. The price of labor is $10 per worker, and the fixed costs are $40.

1. Using the information provided, what are thetotal costs (TC)of production at ZERO output? (3 points)
2. What is the marginal cost of producing a can of red herring in production period C? Be sure to show your work. (3 points)
3. Explain why marginal cost falls and then rises in the short-run. (3 points)
4. State the profit maximizing 'rule.' (1 point)

*EXTRA CREDIT: The price of a can of red herrings in a perfectly competitive market is $2 per can. Using the information for the firm in the table above, what is the profit maximizing level of output? Be sure to explain how you arrived at the answer.