Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Marginal product: ? Total cost: Average total cost: Marginal cost:

a) The marginal product is the additional output that can be produced by adding one more unit of a variable input, in this case, a worker. It can be calculated by finding the difference in output as each additional worker is added.

Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Marginal product: -, 20, 30, 40, 30, 20, 10, 5

b) If a worker costs $100 a day and the firm has fixed costs of$200, the total cost can be calculated by adding the fixed costs to the variable costs (number of workers times the cost per worker).

Workers: 0, 1, 2, 3, 4, 5, 6, 7 Total cost: $200,$300, $400,$500, $600,$700, $800,$900

c) The average total cost (ATC) is the total cost divided by the quantity of output produced. It can be calculated by dividing the total cost by the output.

Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Total cost: $200,$300, $400,$500, $600,$700, $800,$900 Average total cost: -, $15,$8, $5.56,$5, $5,$5.33, $5.81

d) The marginal cost (MC) is the change in total cost that arises when the quantity produced changes by one unit. It can be calculated by finding the difference in total cost as each additional unit of output is produced.

Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Total cost: $200,$300, $400,$500, $600,$700, $800,$900 Marginal cost: -, $5,$3.33, $2.5,$2.5, $3.33,$5, $10