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Labor Output MP AP FC O 1 2 3 3456 Suppose you have just bought a car wash and you're going to rename it

  

Labor Output MP AP FC O 1 2 3 3456 Suppose you have just bought a car wash and you're going to rename it The Jerry Garcia Personal Touch Car Wash. You have been provided with the following informationfoundin thetablebelow. This information is on a perhourbasis. Suppose labor is your only variable input and your cost of labor per hour (the wage rate plus social securitytaxes...) is $10 per worker. Fill in the missing information in the table and then answer the following questions. Take the table below and put it in your homework with your answers. Answer each question with complete sentences and use the vocabulary we learned in class. B. C. 0 4 12 17 20 21 19 50 50 50 50 50 50 50 A. With which worker(s) do we realize increasing returns? How do you VC TC MC AFC AVC ATC know? With which worker do we first realize the law of diminishing marginal productivity? How do you know? With which worker(s) do we realize diminishing returns? How do you D. E. F. G. H. know? Would you employ the sixth worker? Why or why not? How are marginal productivity and marginal cost related? How are average productivity and marginal cost related? What is the relationship between the marginal productivity and average productivity of these workers? What is the relationship between marginal cost and average variable cost? What is the relationship between marginal cost and average total cost?

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