1. John operates a bakery and his production function per week is given in the table below. The current equilibrium weekly wage in the labor market is $400 per week and his fixed costs are equal to $300 per week. John sells each cake produced at his bakery for $10.

Quantity of Labor (workers)	Quantity of cakes
0	0
2	200
4	350
6	450
8	500

a. Find the marginal product of labor for each worker (2 points)

Quantity of Labor (workers)	Marginal product of labor (cakes per worker)	VMPL
0
2
4
6
8

b. How many workers should be hired? (2 points)

b. Why does the marginal product of labor reflect diminishing returns? (2 points)

c. Find the revenue, marginal revenue, total cost, and marginal cost for each quantity of cakes given in the table. (4 points)

Quantity of cakes	Revenue	MR	Total Cost	Marginal Cost
0
200
350
450
500

c. What quantity of cakes should be produced?(2 points)