Costs of production

1) How does marginal product of labor change as more workers are hired?
Each worker brings a production out put untill it gets too crowed

2) What is the impact of diminishing marginal returns on labor?


3) Give an Example of a fixed cost and a variable cost at a Bakery.
A fixed cost is like pop. a varibal cost like brear can be changed by the scaricty

4) How does a firm calculate marginal cost?
how much each worker puts out and how much they get paid

5) A Firm has two factories, one is 10,000 sq. ft and the other is 20,000 sq. ft. As the number of workers increases, which factory do you think will experience diminishing marginal returns first? Why? the 10,000 sq ft would run out of space first then the 2nd


6) Explain whether each of these expenses of a clothing or textile mill is a fixed. cost or a variable cost and why. a) Repairs to leaking roof-Variable cost/ texiall
b) cotton-Expence of a clothing fixed
c) food for the mill's cafeteria-fixed cost/ textile
d) night security guard- varibal cost/textial
e) electricity- Fixed/textial

7) You own a small chair factory. Your production information is in the table below:
a) What is the total cost when the output is 2?
5+27=$32
b) What is the marginal cost of the third unit?
55+5=60
c) How much would you produce if the market price is $24?