5.2+Questions

5.2 Questions # 1-4
1. As more workers are hired the marginal product of labor will go up because there are more workers to produce more products. 2. Diminishing marginal returns cuts the marginal product of labor. 3. A fixed cost would be rent of the space and a variable cost would be the amount of ingredients they buy to make their products. 4. Marginal cost is adding one more unit to their fixed costs