Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4 Nimbus Lid 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
4 Nimbus Lid 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 0 20 50 90 YOU AWN -O 120 140 150 155 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 = TC/Q.) What pattern do you see? d Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) 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 Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started