Now see the column for marginal cost. (Recall that MC=ΔTC/ΔQ.)What pattern do you see? 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: 0, 5, 3.33, 2.5, 3.33, 5, 10, 20

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:

The total cost of producing a certain good is given by TC=300ln(q+30)+150. Find the marginal cost (MC) and the avarage cost (AC) functions.

Compare the column for marginal product with the column for marginal cost. Explain the relationship. Marginal product: 0, 20, 30, 40, 30, 20, 10, 5 Marginal cost: 0, 5, 3.33, 2.5, 3.33, 5, 10, 20

Suppose a firm produces paper planes using one variable factor, labour and one fixed factor, capital. Labour can be hired at a cost of $50 per hour. Complete Table 2 calculating Marginal Product (MP) of each additional worker hour, the Total Variable Cost (TVC) and Marginal Cost (MC). TABLE 2 – Paper plans per hour worker hrs: 1, 2, 3, 4, 5, 6 Output/hr:100, 210, 330, 430, 510, 560 TVC: 50, 100, 150, 200, 250, 300 MP: ? MC: ? a) How did you calculate TVC? b) Discuss the relationship between marginal cost and marginal product.

Carefully reproduce and fill in the blanks in the table below:Where VMPL is the Value of the Marginal Product. 6 Marks(b). If a production function is given by the equation: Q = 12X + 10X2 - X3, whereLabour Wage Rate Price Output MPL VMPL Marginal Profit0 400 3 01 400 3 762 400 3 2483 400 3 7924 400 3 7845 400 3 11006 400 3 14167 400 3 17088 400 3 19529 400 3 212410 400 3 22