Review the Ledger-Enquirer news article located in Module 8 entitled: "Chick-fil-A begins construction ...". 1. Identify examples of two fixed costs and two variable costs the restaurant may incur once it begins operations. 2. The restaurant expects to hire over 150 employees. Why would employee work scheduling be an important part of this process? *HINT: Be sure to incorporate the concepts of Marginal Product of Labor and Diminishing Marginal Returns of an input in your discussion.

Describe the difference between a diminishing marginal product of labor and a negative marginalproduct of labor. Why would a profit-maximizing firm always choose to operate where the marginalproduct of labor is decreasing (but not negative)?

The short-run production function for a manufacturer of flash memory drives is shown in the table below. Based on this information, answer the following questions. Input of Labor (workers per week) Total Output of Flash Memory Drives 0 0 1 25 2 60 3 85 4 105 5 115 6 120 a.   Calculate the average product at each quantity of labor. b.   Calculate the marginal product of labor at each quantity of labor. c.   At what point does marginal product begin to diminish?

Suppose Marcus produces chocolate with two inputs: factory and labour. The rent of the factory is $3,000 per week, and the wage of each worker is $2,000 per week. When Marcus produces 200 pounds of chocolate every week, he employs 2 workers. Calculate the fixed cost (FC), variable cost (VC), total cost (TC), average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC) of producing 200 pounds of chocolate.        The total cost of producing 201 pounds of chocolate is $7030. Calculate the marginal cost (MC) of producing the 201st pound of chocolate.