6. Nimbus Ltd. 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 Average Marginal Total Total Marginal Workers Product Cost Cost Cost Output 0 20 2 50 90 4 120 5 140 6 150 7 155 Fill in the column of marginal products. What pattern do you see? How might you a. explain it? b. A worker costs $100 per day, and the firm has fixed costs of $200. Use this information to fill in the column for total cost. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do c. you see? d. Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) Wh 6/8 do you see? Compare the column for marginal product and the column for marginal cost. Explain e. the relationship. f. Compare the column for average total cost and the column for marginal cost. Explain the relationship
6. Nimbus Ltd. 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 Average Marginal Total Total Marginal Workers Product Cost Cost Cost Output 0 20 2 50 90 4 120 5 140 6 150 7 155 Fill in the column of marginal products. What pattern do you see? How might you a. explain it? b. A worker costs $100 per day, and the firm has fixed costs of $200. Use this information to fill in the column for total cost. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do c. you see? d. Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) Wh 6/8 do you see? Compare the column for marginal product and the column for marginal cost. Explain e. the relationship. f. Compare the column for average total cost and the column for marginal cost. Explain the relationship
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter14: Labor Markets And Income
Section: Chapter Questions
Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...
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Transcribed Image Text:6.
Nimbus Ltd. 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
Average
Marginal
Total
Total
Marginal
Workers
Product
Cost
Cost
Cost
Output
0
20
2
50
90
4
120
5
140
6
150
7
155
Fill in the column of marginal products. What pattern do you see? How might you
a.
explain it?
b. A worker costs $100 per day, and the firm has fixed costs of $200. Use this information
to fill in the column for total cost.
Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do
c.
you see?
d. Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) Wh
6/8
do
you see?
Compare the column for marginal product and the column for marginal cost. Explain
e.
the relationship.
f.
Compare the column for average total cost and the column for marginal cost. Explain
the relationship
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