The Lucky Repair Shop is specializing in auto repairs and located at Concepcion Grande, Naga City. In the short run, it can change its output (the number of cars fixed) only by varying the number of mechanics it employs. Over the years, the Manager has tried hiring different numbers of workers. The data on the average productivity of each worker ( the Average Product of Labor) for each number of workers are given in the table below.

Table I.

Number of workers	Average Productivity	Total Product	Marginal Product
1	10
2	18
3	24
4	18
5	12
6	8

1. Calculate theTotal Product of Labor(total output of the firm) and

Marginal Product of Labor corresponding to each number of workers.

1. With how many workers does the Law of Diminishing Marginal Returns starts to be evident?

1. In its attempt to increase output, Lucky Repair Shop hires more

workers but this results in diminishing marginal returns.

1. Should the manager of Lucky Repair Shop recommend that the number of workers should be limited to a certain number of workers?
2. Yes [ ] 2 No [ ] .

D.1 If yes, how many ______ . Explain your position in 2 sentences only.

D.2 If No, why not? Explain your position in 2 sentences only.

E. If Lucky has 3 workers and each earns P450 daily. How much is the average labor cost for each car repaired?