You can answer in very brief.

The key terms: TVC = total variable cost AVC = average variable cost TFC (or just FC) = total fixed cost AFC = average fixed cost TC = total cost ATC = average total cost MC = marginal cost = change in total cost / change in output MPL = change in output / change in labor APL = output / labor The key formulas: TC = FC + VC ATC = TC/Q AFC = FC/Q AVC = VC/Q Note that dividing the first equation (TC) by Q we get ATC = AFC + AVC Memorizing the above will not work. You need to jump in and get your hands dirty. I strongly encourage you to take the time to regraph the data from the book example and think about the relationships between the curves as part of this process. Here are some questions: 1. When the point of diminishing marginal product is reached, the addition of one more unit of labor will cause total product to 2. Diminishing marginal returns (= diminishing marginal product of labor) implies that marginal costs are_ Total product data Number of workers Units of output 0 10 2 30 3 44 4 55 5 60 6 60 55 3. Refer to table above, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the worker.4. Mark's Baseballs produces baseballs. Mark's Baseballs has total xed costs of $500. Mark's average variable cost is $20, and his average total cost is $25. Mark is currently producing how many baseballs? show work Cost data for Candy's Cakes # cakes VC MC AVC FC TC ATC 0 n/a nl'a n/a 50 n/a 1 30 2 50 3 25 4 155 5 140 5. The table above presents the cost schedule for Candy's Cakes. What are total xed costs if Candy produces four cakes? (show work/explain) 6. The table above presents the cost schedule for Candy's Cakes. What are total costs if Candy produces ve cakes? (show work) 7. The table above still presents the cost schedule for Candy's Cakes. What is the marginal costs of the third unit? (show work) 8. The table above now represents the cost schedule for Candy's Canes (she makes walking canes for boomers). What is the average variable cost of producing four canes? (show work)