Nimbus, Inc., 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 Average Marginal

Product Cost Total Cost

Cost

0 0 ______ ______ _______ ________

1 20 ______ _______ _______ _________

2 50 _______ ________ ________ __________

3 90 _______ _______ ________ __________

4 120 ________ ________ ________ __________

5 140 ________ ________ _________ ___________

6 150 ________ __________ _________ ___________

7 155 ________ ___________ __________ ____________

Fill in the column of marginal products. What pattern do you see? How might you explain it?

a. A worker costs$100a day, and the firm has fixed costs of $200. Use this information to fill in the column for total cost.

b. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do you see?

c. Now fill in the column for marginal cost. (Recall that MC = ^TC/^Q .) What pattern do you see?

d. Compare the column for marginal product with the column for marginal cost. Explain the relationship.

e. Compare the column for average total cost with the column for marginal cost. Explain the relationship.