Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 13, Problem 4PA
Subpart (a):
To determine
Calculate marginal product.
Subpart (b):
To determine
Calculate Total cost.
Subpart (c):
To determine
Calculate average total cost.
Subpart (d):
To determine
Calculate marginal cost.
Subpart (e):
To determine
Relationship between marginal product and marginal cost.
Subpart (f):
To determine
Relationship between average cost and marginal cost.
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Students have asked these similar questions
Nimbus,Inc.,makes brooms and then sells door to door.Here is the relationship between the number of workers and Nimbus's output during a given day:a.Fill in the column of marginal products.What patterns do you see?How might you explain it?b.A workers costs $100 a day, and the firm has fixed cost of $200.Use this information to fill in the column for total cost.c.Fill in the column for average total cost.What pattern do you see?d.Now fill in the column for marginal cost.What pattern do you see?e.Compare the column for marginal product with the column for marginal cost.Explain the relationship.f.Compare the column foraverage total cost with the column for marginal cost.Explain the relationship.
The graph below represents the extraction costs that Slippery Slope Oil Company faces during its first year. Assume the firm is
operating on curve 'Total costo,' as shown by the graph.
$200
Tools
$180
Total cost
$160
Total cost1
Total cost
$140
$120
Price
$100
$80
$60
$40
$20
250
500
750
1000
1250
1500
First-year quantity extracted (millions of barrels)
Dollars
a. Calculate and fill in the column of marginal products. What pattern do you see? How might you explain it? Hints: show your calculations. b. A worker costs $150 per day, and the firm has fixed costs of $300. Use this information to calculate and fill in the column for total cost. Hints: show your calculations. c. Calculate and fill in the column for average total cost. (Recall that ATC=TC/Q.) What pattern do you see? Hints: show your calculations.
Chapter 13 Solutions
Principles of Economics (MindTap Course List)
Ch. 13.1 - Prob. 1QQCh. 13.2 - Prob. 2QQCh. 13.3 - Prob. 3QQCh. 13.4 - Prob. 4QQCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQ
Ch. 13 - Prob. 1QRCh. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QRCh. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - Prob. 6PACh. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PA
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