| Number of Workers | Output (loaves of bread) | Marginal Product of Labour | Shop Rent | Labour Cost | Total Cost |
| 0 | 0 | -- | |||
| 1 | 400 | ||||
| 2 | 820 | ||||
| 3 | 430 | ||||
| 4 | 1695 | ||||
| 5 | 2160 | ||||
| 6 | 390 |
Belinda runs a bakery. She rents a shop for $1200 a week and can hire casual workers for $600 a week. The table above shows output and cost data for Belinda’s business.
(a) Complete the table. (5 marks) Use the table to answer the following questions.
(b) Over the Christmas/New Year period Belinda closes her business for a week. What are her costs during that week? (2 marks)
(c) In one week, Belinda exactly breaks even. If her revenue for the week is $4800, how many loaves of bread did she sell? (2 marks)
(d) Judging from the marginal product of labour data, would you say that Belinda had to settle for increasingly unproductive workers? Explain your answer. (3 marks)
(e) Belinda has received an order to supply 3500 loaves of bread per week for the next 4 months. If she expects the trend in the marginal product of labour will continue in the same direction, what do you think she should do? Explain your answer. (3 marks)