3. Problems and Applications Q4 Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus's output day: In the following table, complete the marginal product column. Workers Output Marginal Product Total Cost Marginal Cost Average Total Cost $120 15 4.00 15 $180 12.00 25 2.40 2 40 $240 6.00 35 1.71 75 S300 4.00 45 1.33 4 120 $360 3.00 30 2.00 5. 150 $420 2.80 15 4.00 6 165 $480 2.91 12.00 7 170 $540 3.18 A worker costs $60 a day, and the firm has fixed costs of $120. Use this information to fill in the column for total cost in the previous table. Fill in the column for marginal cost in the previous table. (Hint: MC = Fill in the column for average total cost in the previous table. (Hint: ATC = " ) Which of the following statements are true about the patterns found in this table? Check all that apply. O Marginal cost declines at first, then rises. O Average total cost is not U-shaped. O when marginal product is rising, marginal cost is falling. O When marginal cost is less than average total cost, average total cost is rising.

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3. Problems and Applications Q4
Nimbus, Inc., 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:
In the following table, complete the marginal product column.
Workers
Output Marginal Product
Total Cost
Marginal Cost
Average Total Cost
S120
15
4.00
1
15
S180
12.00
25
2.40
2
40
$240
6.00
35
1.71
3
75
S300
4.00
45
1.33
4
120
S360
3.00
30
2.00
150
$420
2.80
15
4.00
165
$480
2.91
12.00
7
170
S540
3.18
A worker costs $60 a day, and the firm has fixed costs of $120. Use this information to fill in the column for total cost in the previous table.
Fill in the column for marginal cost in the previous table. (Hint: MC =
ATC
Fill in the column for average total cost in the previous table. (Hint: ATC =
Which of the following statements are true about the patterns found in this table? Check all that apply.
O Marginal cost declines at first, then rises.
Average total cost is not U-shaped.
When marginal product is rising, marginal cost is falling.
When marginal cost is less than average total cost, average total cost is rising.
AAAAAAA
Transcribed Image Text:3. Problems and Applications Q4 Nimbus, Inc., 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: In the following table, complete the marginal product column. Workers Output Marginal Product Total Cost Marginal Cost Average Total Cost S120 15 4.00 1 15 S180 12.00 25 2.40 2 40 $240 6.00 35 1.71 3 75 S300 4.00 45 1.33 4 120 S360 3.00 30 2.00 150 $420 2.80 15 4.00 165 $480 2.91 12.00 7 170 S540 3.18 A worker costs $60 a day, and the firm has fixed costs of $120. Use this information to fill in the column for total cost in the previous table. Fill in the column for marginal cost in the previous table. (Hint: MC = ATC Fill in the column for average total cost in the previous table. (Hint: ATC = Which of the following statements are true about the patterns found in this table? Check all that apply. O Marginal cost declines at first, then rises. Average total cost is not U-shaped. When marginal product is rising, marginal cost is falling. When marginal cost is less than average total cost, average total cost is rising. AAAAAAA
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