The following table shows the daily relationship between the number of workers a
ID: 1186660 • Letter: T
Question
The following table shows the daily relationship between the number of workers and output (Q) for a small factory in the short run, with capital held constant. Each worker costs $200 per day, and the firm has fixed costs of $50 per day. (Round your answers to two decimal places)
1. Calculate total cost (TC),
2. Calculate marginal cost (MC)
3. Calculate average total cost (ATC).
________________________________________________
Workers Q TC MC ATC
________________________________________________
0 0 ___ --- ---
1 10 ___ ___ ___
2 22 ___ ___ ___
3 35 ___ ___ ___
4 46 ___ ___ ___
5 51 ___ ___ ___
Explanation / Answer
Workers
Q
TC
MC (=dTC/dQ)
ATC (=TC/Q)
0
0
50
-
-
1
10
250 [=50+(200*1)]
20 [=200/10]
25
2
22
450 [=50+(200*2)]
16.67 [=200/12]
20.46
3
35
650 [=50+(200*3)]
15.39 [=200/13]
18.57
4
46
850 [=50+(200*4)]
18.18 [=200/11]
18.48
5
51
1050 [=50+(200*5)]
40 [=200/5]
20.59
Workers
Q
TC
MC (=dTC/dQ)
ATC (=TC/Q)
0
0
50
-
-
1
10
250 [=50+(200*1)]
20 [=200/10]
25
2
22
450 [=50+(200*2)]
16.67 [=200/12]
20.46
3
35
650 [=50+(200*3)]
15.39 [=200/13]
18.57
4
46
850 [=50+(200*4)]
18.18 [=200/11]
18.48
5
51
1050 [=50+(200*5)]
40 [=200/5]
20.59
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