Workers Output Marginal product Total costs ATC MC 1 20 2 50 90 120 5 140 6. 150 7 155 1. Fill in the column of marginal products. What pattern do you see? How might you explain it? 2. 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. 3. Fill in the column for average total cost. (Recall that ATC = TCI Q.) What pattern do you see? 4. Now fill in the column for marginal cost. (Recall that MC = A TCIA Q.) What pattern do you see? 5. Compare the column for marginal product and the column for marginal cost. Explain the relationship. 6. Compare the column for average total cost and the column for marginal cost. Explain the relationship. 3. 4.

Workers Output Marginal product Total costs ATC MC 1 20 2 50 90 120 5 140 6. 150 7 155 1. Fill in the column of marginal products. What pattern do you see? How might you explain it? 2. 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. 3. Fill in the column for average total cost. (Recall that ATC = TCI Q.) What pattern do you see? 4. Now fill in the column for marginal cost. (Recall that MC = A TCIA Q.) What pattern do you see? 5. Compare the column for marginal product and the column for marginal cost. Explain the relationship. 6. Compare the column for average total cost and the column for marginal cost. Explain the relationship. 3. 4.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4PA

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