3. Consider the following (short -run ) production function relating labor input to output . Note that the firm has fixed inputs . for which it pays $ 30 regardless of the output level. Labor input costs $10 per hour. Output Labor Fixed Variable Total Marginal MP (hours) Cost Cost Cost Cost 0 0 $30 40 2 70 4 6 100 8 105 10 a) Calculate the Marginal (Physical ) Product of Labor . MP, . in the table above Does this firm's production exhibit diminishing retums to labor input ? b) Use this information to calculate fixed cost . variable cost , total cost and marginal cost in the table above 4. Jane quit her job at AT &T where she earned $29,000 a year. She cashed in $40.000 in corporate bonds that earned 10 % interest annually to buy a mini -bus Jane has decided to buy the mini -bus and set up a commuter service between Lincoln and Omaha . There are 1000 people who will pay $400 a year each for the commuter service ; $280 from each person goes for gas . maintenance . insurance , depreciation etc . a) What are Jane's total revenues (Price x Quantity )? (b) What are Jane's explicit costs ? (c) What is her accounting profit ? (d) What is her economic profit (or loss )? 5. The information about the costs of a firm is given below. Output AFC , $ AVC. $ 1 50.00 100.00 2 25.00 80.00 3 16.67 66-67 4 12.50 65.00 5 10.00 68.00 6 8.3 73.33 7 7.14 80.00 8 6.25 87.50