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Assignment 2Business EconomicsCourse: EPGDMAnswer Any 3 questions. Each question carries 5 marks1. You are an employer seeking to fill a vacant position on an assembly line. Are you more concerned with the average product of labor or the marginal product of labor for the last person hired? If you observe that your average product is just beginning to decline, should you hire any more workers? What does this situation imply about the marginal product of your last worker hired? Discuss the three stages of production function with an example. Which stage will be preferred by you as rational firm? Why?2. Forey, Inc., competes against many other firms in a industry. Over the lastdecade, several firms have entered this industry and, as consequences, Forey is earning a return on investment that roughly equals the interest rates. Furthermore, the four-firm concentration ratio and Herfindahl Hirschman index are both quite small. Based on this information, which market structure best characterizes the industry in which Forey competes?