3. 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 day: In the following table, complete the marginal product column. Workers Output Marginal Product Total Cost Marginal Cost Average Total Cost $120 15 4.00 15 $180 12.00 25 2.40 2 40 $240 6.00 35 1.71 75 S300 4.00 45 1.33 4 120 $360 3.00 30 2.00 5. 150 $420 2.80 15 4.00 6 165 $480 2.91 12.00 7 170 $540 3.18 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 = 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. O Marginal cost declines at first, then rises. O Average total cost is not U-shaped. O when marginal product is rising, marginal cost is falling. O When marginal cost is less than average total cost, average total cost is rising.

3. 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 day: In the following table, complete the marginal product column. Workers Output Marginal Product Total Cost Marginal Cost Average Total Cost $120 15 4.00 15 $180 12.00 25 2.40 2 40 $240 6.00 35 1.71 75 S300 4.00 45 1.33 4 120 $360 3.00 30 2.00 5. 150 $420 2.80 15 4.00 6 165 $480 2.91 12.00 7 170 $540 3.18 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 = 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. O Marginal cost declines at first, then rises. O Average total cost is not U-shaped. O when marginal product is rising, marginal cost is falling. O When marginal cost is less than average total cost, average total cost is rising.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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