1. The information below is for Lukas' teddy bear manufacturing plant, where L = number of workers; Q = output; MPL = marginal product of labor; APL = Average product of labor.

Number of Workers (L)	Number of Teddy Bears (Q)	Marginal Product of Labor (MPL)	Average Product of Labor (APL)
0	0	-	???????
1	8	???????	???????
2	20	???????	???????
3	35	???????	???????
4	45	???????	???????
5	52	???????	???????
6	57	???????	???????
7	60	???????	???????

1. Complete the table filling in the blank cells. (???????) (7 pts.)

1. Write down the formula for (i) MP and (ii) AP. (1 pt. @)

1. Using Excel software program, plot the total product of labor curve. (5 pts.)

1. Using Excel software program, plot on one diagram the MP and AP curves of labor.

(5 pts.)

1. Refer to the completed table in (a). For what range of labor input are there increasing returns to labor? Explain. (5 pts.)

1. Refer to the completed table in (a). For what range of labor input are there diminishing returns to labor? Explain. (5pts.)

1. Refer to the completed table in (a). For what range of labor input is marginal product greater than average product? Explain (briefly) what is happening to average product as employment increases over this range? (5 pts.)

1. For what range of labor input is marginal product smaller than average product? Explain (briefly) what is happening to average product as employment increases over this range? (5 pts.)

What is the difference between a fixed input and a variable input? Give an example of each