Bofore starring in Guardans of the Galary, Chris Pratt had appeared in 11 movies that grossed an average of $7 milion on the opening weekend. Guardians of the Galaxy grossed $04 million.The success of Guardians of the Galaxythe opportunity cost of hiring Chris PrattMovie producers now haveincentive to hire Chris Pratt.59OA decreases, moreOB. increases: lessOC decreases, lessOD. increases more

Opportunity cost is the next best alternative forgone for selecting the current alternative. As…

Butore staring in Guardans of the Galary, Chris Prat had appeared in 11 movies that grossed an average of $7 million on the opening weekend. Guardans of the Galary grosbed S4 mil The success of Guardans of the Galary the opportunity cost of hiing Chris Pra Movie producers now have Incentive to hire Chris Pratt 59 OA decreases more OR noesses less Oc decreases less OD noreases more

Butore staring in Guardans of the Galary, Chris Prat had appeared in 11 movies that grossed an average of $7 million on the opening weekend. Guardans of the Galary grosbed S4 mil The success of Guardans of the Galary the opportunity cost of hiing Chris Pra Movie producers now have Incentive to hire Chris Pratt 59 OA decreases more OR noesses less Oc decreases less OD noreases more

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 14DQ

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Nimbus, Inc., makes brooms and then sells themdoor-to-door. Here is the relationship between thenumber of workers and Nimbus’s output during agiven day:Workers OutputMarginalProductTotalCostAverageTotalCostMarginalCost0 0 ____ ________ ____1 20 ____ ________ ____2 50 ____ ________ ____3 90 ____ ________ ____4 120 ____ ________ ____5 140 ____ ________ ____6 150 ____ ________ ____7 155 ____ ____a. Fill in the column of marginal products. Whatpattern do you see? How might you explain it?b. A worker costs $100 a day, and the firm has fixedcosts of $200. Use this information to fill in thecolumn for total cost.c. Fill in the column for average total cost. (Recallthat ATC T 5 C Q/ .) What pattern do you see?d. Now fill in the column for marginal cost.(Recall that MC TC 5 D ∆ / Q.) What patterndo you see?e. Compare the column for marginal productwith the column for marginal cost. Explain therelationship.f. Compare the column for average total costwith the column for marginal cost. Explain…
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