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1) Discuss on relationships between production and cost, highlighting the equivalence between diminishing marginal productivity and increasing marginal costs. Given a table of data representing a short-run production function (levels of the variable input and the associated total product), compute marginal and average products and determine the input level where diminishing returns begins.
2) Discuss on the relationships among total, average, and marginal costs. Using the same data from the previous(#1,as above) exercise and a wage rate specified by the instructor, compute the marginal cost curve based on the marginal products.
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