QUESTION 1:Marginal Product

A watch company manufactures watches using the technology described below.

1. Fill in the Marginal Product columns of these tables.
2. When six workers are utilized each hour, at what point does diminishing marginal product set in?
3. When eight workers are utilized, at what point does diminishing marginal product set in?
4. EXPLAIN: why is the point of diminishing marginal product different in each case?

ENTER part i. of your answers in the blank spaces in the table below.

With 6 workers	With 8 workers
Labour	Total Product	Marginal Product	Labour	Total Product	Marginal Product
1 worker	10		1 worker	14
2 workers	26		2 workers	34
3 workers	52		3 workers	62
4 workers	94		4 workers	100
5 workers	130		5 workers	140
6 workers	162		6 workers	166
7 workers	188		7 workers	178

ANSWER SPACE for parts ii, iii and iv:

QUESTION 2: Costs of production

Complete the following table describing the short-run daily costs of the Jeans Company.

Total Product (JEANS)	Total Fixed Cost	Total Variable Cost	Total Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost	Marginal Cost
0		0		-	-	-
1		25
2		40	100
3		50
4		55
5		55
6		70
7		100
8		145

FILL IN YOUR DATA IN THE TABLE

SHOW YOUR STEPS