2. Suppose that Lynn’s output of hand-made mittens per hour is deter mined by th

2. Suppose that Lynn’s output of hand-made mittens per hour is deter mined by the following table. Suppose she is paid $15 per hour and has purchased a sewing machine for $150.

Hours Worked Marginal Product

1 4

2 3

3 1

(a) Copy the table above and add information on the total output.

(b) Add the average, marginal and the total cost of production to the table.

(c) Graph and label the total product curve.

(d) Graph and label the total cost curve.

(e) What pattern can we observe in the marginal returns of this pro duction process?