Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Marginal product: ? Total cost: Average total cost: Marginal cost:
Question
Workers: 0, 1, 2, 3, 4, 5, 6, 7
Output: 0, 20, 50, 90, 120, 140, 150, 155
Marginal product: ?
Total cost:
Average total cost:
Marginal cost:
Solution
a) The marginal product is the additional output that can be produced by adding one more unit of a variable input, in this case, a worker. It can be calculated by finding the difference in output as each additional worker is added.
Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Marginal product: -, 20, 30, 40, 30, 20, 10, 5
b) If a worker costs 200, the total cost can be calculated by adding the fixed costs to the variable costs (number of workers times the cost per worker).
Workers: 0, 1, 2, 3, 4, 5, 6, 7 Total cost: 300, 500, 700, 900
c) The average total cost (ATC) is the total cost divided by the quantity of output produced. It can be calculated by dividing the total cost by the output.
Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Total cost: 300, 500, 700, 900 Average total cost: -, 8, 5, 5.33, $5.81
d) The marginal cost (MC) is the change in total cost that arises when the quantity produced changes by one unit. It can be calculated by finding the difference in total cost as each additional unit of output is produced.
Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Total cost: 300, 500, 700, 900 Marginal cost: -, 3.33, 2.5, 5, $10
Similar Questions
Now see the column for marginal cost. (Recall that MC=ΔTC/ΔQ.)What pattern do you see? Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Total cost: 200, 300, 400, 500, 600, 700, 800, 900 Marginal cost: 0, 5, 3.33, 2.5, 3.33, 5, 10, 20
The marginal cost curve shows the relationship between:Multiple choice question.total cost and marginal cost.output and number of workers.marginal cost and output.marginal cost and number of workers.
Nimbus Ltd makes brooms and then sells them door-to-door.Here is the relationship between the number of workers and Nimbus's output during a given day. Workers: 0, 1, 2, 3, 4, 5, 6, 7 Output: 0, 20, 50, 90, 120, 140, 150, 155 Marginal product: ? Total cost: Average total cost: Marginal cost: a) Fill in the column of marginal products.What pattern do you see? How might you explain it? b) A worker costs $100 a day and the firm has fixed costs of $200. Use this information to fill in the column for total cost. c) Fill in the column for average total cost.(Recall that ATC=TC/Q.)What pattern do you see? d) Now fill in the column for marginal cost. (Recall that MC=ΔTC/ΔQ.)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 for average total cost with the column for marginal cost.Explain the relationship.
Compare the column for average total cost with the column for marginal cost.Explain the relationship. Average total cost: 0, 15, 8, 5.56, 5, 5, 5.33, 5.81 Marginal cost: 0, 5, 3.33, 2.5, 3.33, 5, 10, 20
The following table provides the different output levels that workers could produce. For example, if three workers are making handbags and two workers are making phones, 45 handbags and 30 phones will be made.A company has 6 workers. If 3 workers are making handbags and 3 workers are making phones, what is the marginal cost of producing one additional phone if a worker changes from handbag production to phone production?
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