How does the marginal product of labor change as more workers are hired?
2. What is the impact of diminishing marginal returns on labor?
3. Give an example of a fixed cost and a variable cost of a bakery.
4. How does a firm calculate the marginal cost?
5. A firm has two factories, one twice as large as the second. As the number of workers at each factory increases, which factory will experience diminishing returns first?
