. Mr. X opens a tee shirt manufacturing plant. The t-shirt company pays 545,000 in annual rent, 518,000 in annual msurance, $210.000 1n annual labor costs. $100,000 in annual material costs. Mr. X invested $100,000 of his own money into the business to purchase machinery. The $100,000 invested alternatively was earning 10% in annual interest. Mr. X was earning $90,000 annually prior to starting his own business. Total revenue for the firm for vear one 1s $520,000. Determine the firm's accounting profit and economic pmt.| . Answer the following questions based on the short run production data below: calculate the marginal product and average product for each additional unit of labor, at what level of labor input does the firm begin to experience diminishing marginal returns, explain the economic rationale of diminishing marginal returns in the short run, what 1s the maximum number of labor this firm would hire? Units of labor total product marginal product average product 0 5 11 18 28 34 37 37 33 = G -] O LA e b B e . A firm has fixed cost of $90.00 and variable costs as indicated in the table below. Complete the table. TVC TC AFC AVC ATC MC 9000 3 - 90.00 $ 50.00 90.00 $ 90.00 90.00 $125.00 90.00 $155.00 90.00 $1%0.00 90.00 $230.00 90.00 $275.00 90.00 $330.00 90.00 $395.00 90.00 $470.00 =] e - T EMDWH.JQ\\U1-I'-MJM--{:} 2% 6% 6% 6% 6% 69 9% 5% 69 4. What 1s the key distinction between the short run and the long run? How 1s the shape of the long run average total cost curve determined? Explain the term economies of scale. Explain the term minimum efficient scale. . What are sunk costs? Provide an example of a sunk cost