Question

Workers	Output	Marginal Product	Fixed cost	Variable cost	Total Cost	Average Total cost	Marginal cost
0	0		200	0	200
1	20	20	200	100	300	300	5.00
2	50	30	200	200	400	200	3.33
3	90	40	200	300	500	166.67	2.50
4	120	30	200	400	600	150	3.33
5	140	20	200	500	700	140	5.00
6	150	10	200	600	800	133.33	10.00
7	155	5	200	700	900	128.57	20.00

a. Fill in the column of marginal products. What patent do you see? How might you explain it?

b. A worker costs $100 that day, and the firm has fixed cost of $200. Use this information to fill in the column the total cost.

c. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What patent do you see?

D. Now fill in the column for marginal cost. (Recall that MC=? TC/ ? Q.) What patent do you see?

e. Compare the column for marginal product, and the column for marginal costs. Explain the relationship.

f. Compare the column for average total cost with the column for marginal cost. Explain the relationship.

I filled in the table already but just need help with the explanation.

Answer 1

a) and (b)

Workers (L)	Output (Q)	MP (ΔTP/ΔL)	FC	VC	TC	ATC (TC/Q)	MC (ΔTC/ΔQ)
0	0		200	0	200
1	20	20	200	100	300	15.00	5.00
2	50	30	200	200	400	8.00	3.33
3	90	40	200	300	500	5.56	2.50
4	120	30	200	400	600	5.00	3.33
5	140	20	200	500	700	5.00	5.00
6	150	10	200	600	800	5.33	10.00
7	155	5	200	700	900	5.81	20.00

In Production Output MP.. As change change in input labore it shows the increase in amount of output when there is an addition unit labor. of when rap2 and law of is greater than zero, declines more i laborat is thired is called the diminishing returns phone) bar * As win thes increases but istage total productivity of labor. at a decreasing rate 4 its maximum point when "MP, 20" reaches at

c)
where, ATC= ATC = Tc/a TFC/Q A FC + AVC ARC 2 Avea TVc/a q it's spr over no. AE AEC (1) declines with t in spread large AVC typically ↑ with I ind - bez of g diminishing marginal units o poodect. both lead to U-shape in ATC
d)
Marginal cost change in Total cost change in quantity One It first decreases i till certain lened then it increases with increase in production of output ^
e)
g Relationship blue b/w map and MC MP 19c when ging then King when at max. then at min. ping when ting then
f)
when MC LATC then ATC ( MC ATC then ATC falling is at its minimum rising MC ATC than ATC

Note- There was error in calculation in your table... So i have done the necessary changes