4 Nimbus Ltd makes brooms and then sells them door-to-door. Here is the relationship between the number
Question:
4 Nimbus Ltd makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output during a given day.
Workers Output Marginal Total cost Average Marginal product total cost cost a Fill in the column of marginal products. What pattern do you see? How might you explain it?
b A worker costs $100 a day and the firm has fixed costs of $200. Use this information to fill in the column for total cost.
c Fill in the column for average total cost. (Recall that ATC = TCIQ.) What pattern do you see?
d Now fill in the column for marginal cost. (Recall that MC = i::,.TC/1::,.Q.) What pattern do you see?
e Compare the column for marginal product with the column for marginal cost. Explain the relationship.
f Compare the column for average total cost with the column for marginal cost. Explain the relationship.
Step by Step Answer:
Principles Of Microeconomics
ISBN: 125206
8th Edition
Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw