2. Use the following information to answer the five parts below (5 marks). Number of Workers Total cost

0 50

1 110

2 160

3 200

4 240

5 250

6 260

7 280

8 310

9 350

10 400

a). What is the marginal cost of hiring the 4th worker?

b). If the firm hires 5 workers, what is the total fixed cost?

c). If hiring the 7th worker increases total product by 5 units and the price of each unit is $2, would the firm hire the 7th worker? Why?

d). If hiring the 6th worker increases total product by 7 units and the price of each unit is $2, would the firm hire the 6th worker? Why?

e). If the firm hires 5 workers, and produces 10 units, what is the average