Solve the following Workers Output Marginal product Total costs ATC MC 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 155 Fill in the column of marginal products. What pattern do you see? How might you explain it? 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. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do you see?
Solve the following Workers Output Marginal product Total costs ATC MC 0 0 1 20 2 50 3 90 4 120 5 140 6 150 7 155 Fill in the column of marginal products. What pattern do you see? How might you explain it? 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. Fill in the column for average total cost. (Recall that ATC = TC/Q.) What pattern do you see?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Solve the following
Workers |
Output |
Marginal product |
Total costs |
ATC |
MC |
0 |
0 |
|
|
|
|
1 |
20 |
|
|
|
|
2 |
50 |
|
|
|
|
3 |
90 |
|
|
|
|
4 |
120 |
|
|
|
|
5 |
140 |
|
|
|
|
6 |
150 |
|
|
|
|
7 |
155 |
|
|
|
|
- Fill in the column of marginal products. What pattern do you see? How might you explain it?
- 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.
- Fill in the column for
average total cost . (Recall that ATC = TC/Q.) What pattern do you see? - Now fill in the column for marginal cost. (Recall that MC = ∆TC/∆Q.) What pattern do you see?
- Compare the column for marginal product and the column for marginal cost. Explain the relationship.
Compare the column for average total cost and the column for marginal cost. Explain the relationship.
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