Using the course materials, PowerPoint slides, your class notes, and each other to respond to the following: 1. Use the following information to respond to (a) and (b) below: Total Output, Q, # DVDs Labor Input, L Marginal Product of Labor, MPL Total Fixed Costs, TFC Total Variable Costs, TVC Marginal Cost, Total Costs, TC MC (a) (b) (c) (d) (e) (f) (g) 0 0 200 0 1 20 100 2 100 200 3 200 500 4 250 600 a. Use columns (a) and (b) to construct (draw) the production function. Label everything! b. Use columns (a) and (b) to complete column (c). c. Does the firm exhibit diminishing marginal product? Explain. d. Does the firm exhibit the law of diminishing returns? Explain. e. Given the information provided, complete column (d). f. If each worker costs the firm $100, complete column (e). g. Use columns (d) and (e) to complete column (f). h. Use columns (b) and (f) to complete column (g). i. Given the information provided in columns (C) and (g), how many workers will this firm hire? Explain. j. Profit maximization occurs where marginal revenue (MR) = marginal costs (MC). If MR = $1, how many DVDs (column b) will the firm produce in order to maximize profits? How many workers will they hire (column a)? 2. Identify and define the economic concept that explains why most studios produce both films and television shows. Include the two main reasons associated with your response. 3. Identify and define the economic concepts that explain why there are so many entertainment industry mergers. Include the main reasons associated with each. (For part of your answer you may use what you identified in problem 2 above.) Using the course materials, PowerPoint slides, your class notes, and each other to respond to the following: 1. Use the following information to respond to (a) and (b) below: Total Output, Q, # DVDs Labor Input, L Marginal Product of Labor, MPL Total Fixed Costs, TFC Total Variable Costs, TVC Marginal Cost, Total Costs, TC MC (a) (b) (c) (d) (e) (f) (g) 0 0 200 0 1 20 100 2 100 200 3 200 500 4 250 600 a. Use columns (a) and (b) to construct (draw) the production function. Label everything! b. Use columns (a) and (b) to complete column (c). c. Does the firm exhibit diminishing marginal product? Explain. d. Does the firm exhibit the law of diminishing returns? Explain. e. Given the information provided, complete column (d). f. If each worker costs the firm $100, complete column (e). g. Use columns (d) and (e) to complete column (f). h. Use columns (b) and (f) to complete column (g). i. Given the information provided in columns (C) and (g), how many workers will this firm hire? Explain. j. Profit maximization occurs where marginal revenue (MR) = marginal costs (MC). If MR = $1, how many DVDs (column b) will the firm produce in order to maximize profits? How many workers will they hire (column a)? 2. Identify and define the economic concept that explains why most studios produce both films and television shows. Include the two main reasons associated with your response. 3. Identify and define the economic concepts that explain why there are so many entertainment industry mergers. Include the main reasons associated with each. (For part of your answer you may use what you identified in problem 2 above.)