Answer
a) Please see the screenshot.
b) Please see the screenshot.
c) Please see the screenshot.
d) Please see the screenshot.
e) The marginal cost and marginal product columns have an inverse relationship. As one increases, the other decreases.
f) The average total cost and the marginal cost follow the same pattern. They both decrease to a point, stay constant for a point, and then increase.
Work Step by Step
a) The marginal product increases for a few workers, and as more workers are hired, the marginal product decreases. (This is diminishing marginal returns.)
b) The total cost column has been updated.
c) The average total cost column has been updated. The average total cost decreases from 0 units to 120 units, stays constant from 120 units to 140 units, and increases after 140 units. (In other words, the average total cost decreases to a point, stays constant for a point, and then increases.)
d) The marginal cost decreases to a point, stays constant for a given output, and then increases.
