3118359058elS8N 978133709657798paren ? \"OMOC?Miam Dad a Blackboard ? MOCGSLSTen

Question

3118359058elS8N 978133709657798paren ? "OMOC?Miam Dad a Blackboard ? MOCGSLSTentbook E Epic n XP4S0 ink POGO Alerts Network * Pokemon Go .Mim MINDTAP Assessment 3 InterAmerican Summer A Due on Tomerrow at 11:59 PM EDT 24. 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 400 12.80 $180 15 40 75 4 120 150 6 165 2.40 1.33 > 2.00 ? >-4.00 ? 45 $48000 12.00 ? $540 A worker costs $60 a day, and the firm hes fixed costs of $120. Use this information to fil in the column for total cost in the previous table Fil in the column for marginal cest in the previous table( Al in the column for averape total cost in the previous table (Mint ATC Prtscn 4 QWER

Explanation / Answer

1. When marginal cost is greater than avearge total cost, average total cost is rising . We can see that when 6 workers are employed marginal cost is more than the average total cost and thereafter as marginal cost increases the avearge total cost also increases.

2. Avearge Total cost curve is u shaped. Average fixed cost falls as the production increases. In the long run, aveage total cost curve takes shape of the avearge marginal cost which is also u shaped.

3. Marginal cost rises first and then declines. This is not true. As per the law of diminshing returns, after a point marginal output will decline which leads to increase in per unit additional cost. hence marginal cost first declines and then rises.

4.When marginal product is rising, marginal cost is falling. Marginal cost is addition of average fixed cost and average variable cost. As the number of units increase, varaible cost increases with it but fixed cost declines. As a result, as the marginal product increases, marginal cost falls.

Workers Output Marginal Product Total Cost Margial Cost Average Total cost 0 0 120 15 (fixed) 4.00 1 15 (15-0) 180 (180-120)/15 12.00 25 (120+60*1) 2.40 (180/15) 2 40 (40-15) 240 (240-180)/25 6.00 35 (120+60*2) 1.71 (240/40) 3 75 (75-40) 300 (300-240)/35 4.00 45 (120+60*3) 1.33 (300/75) 4 120 (120-75) 360 (360-300)/45 3.00 30 (120+60*4) 2.00 (360/120) 5 150 (150-30) 420 (420-360)/30 2.80 15 (120+60*5) 4.00 (420/150) 6 165 (165-150) 480 (480-420)/15 2.91 5 (120+60*6) 12.00 (480/165) 7 170 (170-165) 540 (540-480)/5 3.18 (120+60*7) (540/170)

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