2. Ch. 12 Problems and Applications Q4Nimbus, 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 givenday:In the following table, complete the marginal product column.Workers Output Marginal Product Total Cost$$$$$$$$0123456703070120165200220230EAMarginal CostA worker costs $120 a day, and the firm has fixed costs of $180. 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 = -.)ATCΔΟFill in the column for average total cost in the previous table. (Hint: ATC = TC.)Average Total CostWhich of the following statements are true about the patterns found in this table? Check all that apply.When marginal cost is less than average total cost, average total cost is rising.Marginal cost declines at first, then rises.Average total cost is not U-shaped.When marginal product is rising, marginal cost is falling.

Marginal cost :- The marginal cost of production is the change in total production cost that comes…

Which of the following statements are true about the patterns found in this table? Check all that apply. When marginal cost is less than average total cost, average total cost is rising. Marginal cost declines at first, then rises. Average total cost is not U-shaped. When marginal product is rising, marginal cost is falling.

Which of the following statements are true about the patterns found in this table? Check all that apply. When marginal cost is less than average total cost, average total cost is rising. Marginal cost declines at first, then rises. Average total cost is not U-shaped. When marginal product is rising, marginal cost is falling.

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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Question

2. Ch. 12 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
$
$
$
$
$
$
$
$
0
1
2
3
4
5
6
7
0
30
70
120
165
200
220
230
EA
Marginal Cost
A worker costs $120 a day, and the firm has fixed costs of $180. 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
ΔΟ
Fill in the column for average total cost in the previous table. (Hint: ATC = TC.)
Average Total Cost
Which of the following statements are true about the patterns found in this table? Check all that apply.
When marginal cost is less than average total cost, average total cost is rising.
Marginal cost declines at first, then rises.
Average total cost is not U-shaped.
When marginal product is rising, marginal cost is falling.

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