Question

imbus, 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	Output	Marginal Product	Total Cost	Marginal Cost	Average Total Cost
0	0
1	30
2	70
3	120
4	165
5	200
6	220
7	230

A worker costs $120 a day, and the firm has fixed costs of $180. 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=∆TC∆QMC=∆TC∆Q.)

Fill in the column for average total cost in the previous table. (Hint: ATC=TCQATC=TCQ.)

Which of the following statements are true about the patterns found in this table? Check all that apply.

Marginal cost declines at first, then rises.

When marginal product is rising, marginal cost is falling.

Average total cost is not U-shaped.

When marginal cost is less than average total cost, average total cost is rising.

Answer 1

ANSWER workers Oletput Marginal Total Marginal Average Total Cost 180 3. $ con 300 420 540 & 165 660 660 4 S 165 200 is 35 200 35 280 220 900 Toe 230 1020 fixed cost $180 variable costa $120 Total cost fixed cost & va niable cost Marginal product product ATP Change in total change in raput . Margina cast - Change in total cost change on output • Average total costa Total cost output obtput