Question

Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output in a given day: In the following table, complete the marginal product column. Workers Marginal Product Total Cost Marginal Cost Average Total Cost Output 0 0 1 15 $ 2. $ 40 75 3 to 4 120 $ 5 150 $ 6 165 $ 7 170 $ A worker costs $60 a day, and the firm has fixed costs of $120. Use this information to fill in the column for total cost in the previous table. Fill in the column for marginal cost in the previous table. (Hint: MC = ATC AQ Fill in the column for average total cost in the previous table. (Hint: ATC = 1) Which of the following statements are true about the patterns found in this table? Check all that apply. When marginal product is rising, marginal cost is falling. when marginal cost is greater than average total cost, average total cost is rising. Average total cost is U-shaped. Marginal cost rises at first, then declines.

Answer 1

Answer:

Worker	output	MP	TC	MC	ATC
0	0		120
1	15	15	180	4	12
2	40	25	240	2.4	6
3	75	35	300	1.71	4
4	120	45	360	1.33	3
5	150	30	420	2	2.8
6	165	15	480	4	2.91
7	170	5	540	12	3.18

MP=change in output/change in worker

TC=VC+FC

VC=wage*worker

MC=change in TC/change in Q

ATC=TC/Q

which of the following statement...........?

when marginal product s rising, marginal cost is falling.

when marginal total cost is greater than average total cost, the average total cost is rising.

average total curve is U shaped.