Quantity of labour (workers)	Quantity of Frozen Yoghurt cups	Marginal Product (MP)	Variable Costs (VC)	Fixed Costs (FC)	Total Costs (TC=FC+VC)	Marginal Cost (MC)	Marginal Cost per cup
$	$
0	0			100
1	50			100
2	120			100
3	200			100
4	250			100
5	280			100
6	300			100

Question 1

Cecilia pays each of her workers $80 per day. The cost of her other variable inputsare $0.50 per cup of yogurt. Her fixed costs (FC) are $100 per day.

a. Calculate the marginal product and the marginal cost

b. Calculate variable and total costs for every level of production. Use the Excel template provided. Ensure formulas are used. (3 marks)

c. Calculate the marginal cost per cup for all the levels of production. Use the Excel template provided. Ensure formulas are used. (2 marks)

d. Using the graph functions on Excel, plot the following curves on the same diagram (2 marks):

1. Variable cost curve
2. Total cost curve

e. Using the graph functions on Excel, plot the following curves on separate diagrams (2 marks):

1. Marginal product curve (from Part 1 above)

2. Marginal Cost per cup curve