3.Write out the per unit formulas to help with parts of question #4

a.Marginal product (MP) =

b.Marginal cost (MC) =

4.Adirondack Woodworking Company produces kitchen cutting boards. The only inputs are one machine, a small building, and wood (the wood is available free of charge in unlimited quantities). The firm's production function is given in columns (1) and (2). It shows the firm's level of output as more workers are employed per week. The cost of each worker is $100 per week and total fixed costs equal $200 per week. Fill in the missing economic data in the table.

__Product____Total Cost ($)___

(1)(2)

LaborTotalMarginal TVCTFCTCMC

a.00**0200200**

b.14040100________2.50

c.210060________________

d.3140____________________

e.4170____________________

f.519020____________5.00

g.620033.33 ________________

h.Based on the above data indicate whether the firm operating in the short run or the long run.

Explain how you know.