1. Using the production function, compute the figures for marginal product using the definition given earlier in this module. Draw a graph of the marginal product curve using the numbers you computed.

Suppose this firm can hire workers at a wage rate of $10 per hour to work in its factory which has a rental cost of $100. Use the production function to derive the cost function.

2. First compute the variable cost for Q = 0 through Q = 5.

3. Next compute the fixed cost for Q = 0 through Q = 5.

4. Then compute the total cost for Q = 0 through Q = 5. This is the cost function.

5. Finally compute the marginal cost for Q = 0 through Q = 5. Draw the marginal cost curve and compare it to the marginal product curve above. Explain what you see.