1. The following is the total product plan of the company Surfboards, S.A.:

Labor (Workers per week)	Production (Boards per week)
1	30
2	70
3	120
4	160
5	190
6	210
7	220

a. Draw the total product curve.

b. Calculate the mean product of labor and draw the average product curve.

c. Calculate the marginal product of labor and draw the marginal product curve.

d. In what range of production does the firm enjoy the benefits of increased specialization and division of labor?

e. and. Over what output range does the firm experience a decrease in the marginal product of labor?

f. Over what output range does the firm experience an increase in the average product of labor but a decrease in the marginal product of labor?

g. Explain how it is possible for a firm to experience an increase in the average product of labor at the same time, but a decrease in the marginal product of labor.

2. The company Tablas de Surf, S.A. has a plan to total product shown in problem 1. Each worker receives a salary of $500 per week and the firm's total fixed cost is $1,000 per week.

a. Calculate total cost, total variable cost, and total cost. total fixed cost for each production quantity and sketch the short-run total cost curves.

b. Calculate average total cost, average fixed cost, average variable cost and marginal cost for each production quantity and plot the curves marginal and average cost in the short run.

c. Draw the PMe, Pg, CVM, and CM curves as those illustrated in Figure 10.6.

6. The company Tablas de Surf, S.A., described in problems 1 and 2, buy a second factory and the total product of each quantity of labor increases at 50 percent. The total fixed cost of operating each factory is $1,000 per week. Each worker receives a salary of $500 per week.

a. Determine the average total cost curve when Tablas de Surf, S. A. operates the two factories.

b. Sketch the long-run average cost curve.

c. At what production rates is it efficient to operaterar one and two factories?