Poan & In the early 2000s car makers began to design vehicles' chassis, engine, and transmissions so that different models could be produced on the same assembly line. Within the first year of implementing the plan, Ford cut production costs by $240 per car. What cost concept was Ford taking advantage of to produce its saving? . Explain why economists regard normal profits as a cost. . Adam's Recycle-Bicycle Shop builds bicycles out of recycled materials; its production function is shown in the accompanying table. Adam owns a small shop with four machines for taking recyclable materials and turning them into steel for bicycle frames and rubber for tires. He also uses up to ten workers, paint, seats, and wires in the production process. # of Workers Total product per month 0 200 500 700 800 850 875 890 900 D = T N ok W = D What are Adam''s fixed inputs! What are his variable inputs? Using table and figures, calculate Adam's marginal product and plot his total product and marginal product curves. What principle explains why the marginal product per worker decline as the number of workers employed increases!? Using the production function for Adam's Recyle-Bicycle Shop above and knowing that he has fixed cost of production equal to $2,000 and his variable cost are $400 per worker, calculate the relevant cost data for Adam. Plot the total cost, total variable cost, and total fixed cost in one figure and the average total cost, average fixed cost, average variable cost, and marginal cost in another figure Why does average fixed cost fall continuously? Why may average variable cost fall and then definitely rise!? Why does average total cost fall and then rise!? How does marginal cost of production relate to the marginal product of each worker