Suppose the output (q) produced by different amounts of labour (L) hired by a firm is given below:

Suppose the output (q) produced by different amounts of labour (L) hired by a firm is given below: IN 3 4 5 6 O 3 9 18 24 27 28 A) Calculate and graph the marginal product curve for labour levels from 1 to 6. Does the firm experience increasing marginal product? decreasing marginal product? B) Assume the firm has fixed costs equal to $192 and that each unit of labour costs $36. For each of the 7 possible output levels calculate fixed cost (FC), variable cost (VC), and total cost (TC). Show your full calculations for the output level q =24. Graph the FC, VC, and TC curves. C) At each of the possible (positive) output levels calculate average variable cost (AVC), average total cost (ATC), and marginal cost (MC). Show your full calculations for the output level q =24. In a new diagram, graph these values. [Hints: (i) If X additional units cost Y additional dollars, then the appropriate MC number is Y/X. (ii) MC numbers are traditionally plotted halfway between output levels since they apply to the move between these two levels (they are not a measurement at a level). In this case, because the gaps between output levels are uneven, this procedure would be complicated, so just graph MC at the "end" output level.] D) Suppose this firm operates in a perfectly competitive market where the market price is $4.00 per unit of output. How many units will the firm produce? What if the market price is $12.00? What if the market price is 36.00? E) Assume that the short-run cost curves are drawn for the long-run efficient plant size and that all firms in the industry are identical. Are any of the market prices from part (d) a long-run equilibrium price? Explain