Exercise 3 (10 points) Background readings: Chapter 13: The Cost of Production Consider the firm XYZ that has a plant of fixed size and produces Danish Pastries. This company can vary its output only by varying the amount of labour it employs The table below shows the relationships between number of workers hired and the output produced by this company. The wage of each worker is $20/hour. The rent this company pays for its factory is $100. Instructions: For each worker the firm XYZ hires, compute: marginal product of labor; fixed cost; variable cost; total cost, marginal cost (MC), average total cost (ATC). Use and present answer with 2 decimals. Create one graph (only one graph is required in which you put both the production function and the total cost on the same graph) in which you draw the production function and the total cost curve for producing the Danish Pastries. Explain why the production function exhibits the property called "diminishing marginal product". Number of workers 0 Output (quantity of Danish pastries produced per hour) 0 0 123456 80 150 210 260 300 330 7 350 8 365 9 375 10 380