The following information is provided for the production and cost analysis of an

organization. Consider this information to respond the below requirements.

Labor (L) Total Product (Q)

1 1

3 2

6 3

10 4

15 5

You are required to compute the marginal product and draw a marginal product curve

using the numbers that you have calculated.

Assume the company hires workers for $10 per hour (wage rate) in the factory having

rental cost of $100. Drive the cost function by using production function.

First compute the variable cost for Q = 0 through Q = 5.

Next compute the fixed cost for Q = 0 through Q = 5.

Then compute the total cost for Q = 0 through Q = 5. This is the cost function.(Marks 3)

Finally compute the marginal cost for Q = 0 through Q = 5.

Draw the marginal cost curve and compare it to the marginal product curve

above. Explain what you see.