1.) You own a fishing company and observe the following data. Where does diminishing returns begin? Why is this occurring?

Workers                    Q of Fish caught

0                                    0

1                                    10

2                                    18

3                                    24

4                                    28

2.) Suppose you and a friend start a babysitting service on campus. What are your fixed and variable costs?

3.) You own a furniture shop and observe the following weekly data.

Q*                 Total Variable cost (TVC)             Total Cost (TC)

0                          $0                                 $300

1                          $50                               $350

2                          $90                               $390

3                          $120                             $420

4                          $150                             $450

a.) What is the Average Fixed Cost of 3 units?

b.) What is the AVC for 2 pieces of furniture?

c.) What is the Marginal Cost (MC) of producing 4 pieces?

d.) What is the Avg Total Cost (ATC) of producing 2 units?