1) Explain the relationship between total, marginal, and average product.
2) Distinguish between fixed, variable and total costs.
3) Explain the difference between average and marginal costs.
4) Solve the following:
Labor                                       Total Physical Product
0                                              0         
1                                              60
2                                              130
3                                              190
4                                              230
5                                              250
Calculate her Average Physical Product (APP) at Labor 2?
5) Marginal Physical Product (MPP = ˆ†TP/ˆ†Labor) at Labor 4?
6) Average Variable Costs (AVC = TW*L/APP) at Labor 3? Wages are fixed at $1,000 per month.
7) Marginal Costs (MC = TW*L/MPP) at Labor 5? Wages are fixed at $1,000 per month.