7. Consider the shape of the production and cost functions for two different firms.

a. For Firm 1, workers have constant marginal product. That is, each worker produces exactly the same amount as the previous worker. Use this information to graph the approximate shape of the firm’s short-run product and cost curves.

b. For Firm 2, workers have diminishing marginal returns everywhere. That is, each worker always produces less than the previous worker. Use this information to graph the approximate shape of the firm’s short-run product and cost curves.