Answer to Question #224952 in Microeconomics for tatto

Question

Nimbus, Inc., makes brooms and then sells them to customers. Here is the relationship between the number of workers and Nimbus's output in a given day:

Workers:

1. 0 worker
2. 1 worker
3. 2 workers
4. 3 workers
5. 4 workers
6. 5 workers
7. 6 workers
8. 7 workers

Output:

1. 0 broom
2. 20 brooms
3. 50 brooms
4. 90 brooms
5. 120 brooms
6. 140 brooms
7. 150 brooms
8. 155 brooms

a.)Marginal product / b.)Total cost / c.)Average Total cost / d.)Marginal cost:

1. ?
2. ?
3. ?
4. ?
5. ？
6. ？
7. ？
8. ？

Calculate:

a.） Find the marginal products of 1 to 8. 

b.） A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to find 1to 8 for total cost. 

c.）  Find 1 to 8 for average total cost. 

d.） Now find 1 to 8 for marginal cost. 

e） Calculate the output level at minimum average total cost for Nimbus.

f) Create Nimbus's marginal cost and average total cost curves. Use the above cost curve to explain diminishing marginal product and explain when Nimbus experiences diminishing marginal product.

Answer 1

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