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Math Help - Economics Help:

  1. #1
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    Exclamation Economics Help:

    The question is:

    5. 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.


    Workers | Output | Marginal Cost | Total Cost | Avg. Total Cost | Marginal Cost
    0 0
    1 20
    2 50
    3 90
    4 120
    5 140
    6 150
    7 155

    a) Fill in the column of marginal products. What pattern do you see? How might you explain it?
    --> I have filled in the Marginal cost. I think I did it right??

    b) A Worker costs $100 per day, and the firm has a fixed cost of $200. Use the information to fill in the column for average for average total cost.

    c) Fill in the column for Total Cost. (Recall that ATC = TC/Q) What pattern do you see?

    d) Now fill in the column for marginal cost (Recall that MC = ^TC/^Q) What pattern do you see?

    e) Compare the column for marginal product and the column for marginal cost. Explain the relationship.

    f) Compare the column for average total cost and the column for marginal cost. Explain the relationship.


    Workers | Output | Marginal Cost | Total Cost ?
    0 0 20
    1 20 30
    2 50 40
    3 90 50
    4 120 60
    5 140 70
    6 150 80
    7 155 90



    I have gotten the marginal cost but i am having trouble with the total cost?

    How do I go about finding the total cost?

    I don't need anyone to fully answer these questions, but if someone could guide me through them? Anything would help.

    Thanks
    Last edited by neek; November 13th 2009 at 09:16 AM.
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  2. #2
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    First find average total cost which is (the number of workers * 100)+200. From there you can rearrange the formula ATC = TC/Q (ATC being average total cost and Q being output) to give ATC * Q=TC and in turn you can use this formula to find total cost.
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