The following table shows a hypothetical short-run production function, where L is the number of labor units, K is the amount of capital (fixed in the short-run), and T P is the total product. The total product is measured in units produced per day. The price of labor is $50 per unit and day. The price of capital is $2 per unit and day.

(a) Fill in the table above. You don't need to fill in MPL, AT C, and MC in the first row (where L = 0). Note that MPL is the marginal product of labor, T F C is the total fixed costs, T V C is the total variable costs, T C is the total cost, AT C is the average total cost, and MC is the marginal cost. (b) Draw the total product curve (in a diagram with L on the x-axis and T P on the y-axis) and the marginal cost curve (in a diagram with quantity on the x-axis and $ on the y-axis). Explain the economic intuition for the shapes of the curves. (c) Suppose the price of the product the company sells is P = 5 per unit and the market is perfectly competitive. How many units of labor should the company employ to maximize profit? Explain the reasoning behind your answer.

\f