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 0 0 1 15 2 40 3 75 4 120 5 150 6 165 7 170 image 2 : 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=ΔTCΔQMC=∆TC∆Q.) Fill in the column for average total cost in the previous table. (Hint: ATC=TCQATC=TCQ.) Which of the following statements are true about the patterns found in this table? Check all that apply. Average total cost is not U-shaped. Marginal product rises at first, then declines. When marginal product is rising, marginal cost is also rising. When marginal cost is less than average total cost, average total cost is falling.
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 0 0 1 15 2 40 3 75 4 120 5 150 6 165 7 170 image 2 : 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=ΔTCΔQMC=∆TC∆Q.) Fill in the column for average total cost in the previous table. (Hint: ATC=TCQATC=TCQ.) Which of the following statements are true about the patterns found in this table? Check all that apply. Average total cost is not U-shaped. Marginal product rises at first, then declines. When marginal product is rising, marginal cost is also rising. When marginal cost is less than average total cost, average total cost is falling.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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.
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Workers
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Output
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Marginal Product
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Total Cost
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Marginal Cost
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| 0 | 0 |
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| 1 | 15 |
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| 2 | 40 |
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| 3 | 75 |
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| 4 | 120 |
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| 5 | 150 |
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| 6 | 165 |
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| 7 | 170 |
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image 2 :
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=ΔTCΔQMC=∆TC∆Q.)
Fill in the column for average total cost in the previous table. (Hint: ATC=TCQATC=TCQ.)
Which of the following statements are true about the patterns found in this table? Check all that apply.
Average total cost is not U-shaped.
Marginal product rises at first, then declines.
When marginal product is rising, marginal cost is also rising.
When marginal cost is less than average total cost, average total cost is falling.
Transcribed Image Text: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
AQ
TC
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.
U Average total cost is not U-shaped.
Marginal product rises at first, then declines.
When marginal product is rising, marginal cost is also rising.
| When marginal cost is less than average total cost, average total cost is falling.
Transcribed Image Text:4. 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
0.
1.
15
2.
40
75
4
120
5.
150
165
170
Show all
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.
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