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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
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. Marginal Total cost Average Marginal product total cost cost Workers Output 0 0 20 50 90 120 140 150 155 MOWUWJb-LUNH a Fill in the column of marginai produces. 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 coturnn for average total cost. (Recall that AFC: TOO.) What pattern do you see? cl Now fill in the column for marginal cost. (Recall that MC: arc/a0.) 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. 9 Healthy Harry's Juice Bar has the following cost schedules: Quantity Variable cost Total cost 0 vats of juice $0 $30 10 40 25 55 45 75 a U A W N - 70 100 100 130 135 165 a Calculate average variable cost, average total cost and marginal cost for each quantity. b Graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average- variable-cost curve? Explain.10 Consider the following table of long-run total cost for three different firms: Quantity Firm A Firm B Firm C $60 $11 $21 70 24 34 80 39 49 J O UA W N - 90 56 66 100 75 85 110 96 106 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale
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