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 Marginal Total Workers Product Cost Cost Cost Output --- 20 1 2 50 90 120 4 5 140 6 150 7 155 d. Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) Wh 6/8 do you see? e. Compare the column for marginal product and the column for marginal cost. Explain 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 Marginal Total Workers Product Cost Cost Cost Output --- 20 1 2 50 90 120 4 5 140 6 150 7 155 d. Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) Wh 6/8 do you see? e. Compare the column for marginal product and the column for marginal cost. Explain the relationship f. Compare the column for average total cost and the column for marginal cost. Explain the relationship
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

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
Marginal
Total
Workers
Product
Cost
Cost
Cost
Output
---
20
1
2
50
90
120
4
5
140
6
150
7
155

Transcribed Image Text:d. Now fill in the column for marginal cost. (Recall that MC = ATC/AQ.) Wh
6/8
do you see?
e. Compare the column for marginal product and the column for marginal cost. Explain
the relationship
f.
Compare the column for average total cost and the column for marginal cost. Explain
the relationship
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images

Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education