Week 7 homework XXXXXXXXXXECO 105 XXXXXXXXXXDue date: 05/14/20211) In the following...

Question

Week 7 homework XXXXXXXXXXECO 105 XXXXXXXXXXDue date: 05/14/2021
1) In the following market,
    Workers
    Output
    Marginal Product
    Total Cost
    Average Total Cost
    Marginal cost
    0
    0




    1
    20




    2
    50




    3
    90




    4
    120




    5
    140




    6
    150




    7
    155




a) Fill the column for marginal product. Can you explain diminishing marginal product based on those numbers?
) A worker cost $80 a day, and the firm has fixed cost of $150. Use this information to fill in the column for total cost.
c) Fill in the column for average total cost.
d) Fill the column for the marginal cost.
e) Compare the column for average total cost and the column for marginal cost. Explain the relationship.

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Himanshu · Accepted Answer

Week 7 homework                     ECO 105                      Due date: 05/14/2021
1) In the following market,
	Workers
	Output
	Marginal Product 
	Total Cost
	Average Total Cost
	Marginal cost
	0
	0
	0
	
	Total cost/output
	Change in total cost / change in output
	1
	20
	20
	$150+($80*1)=$230
	=$230/20=$11.50
	=230/20 = $11.5
	2
	50
	30
	$150+($80*2)=$310
	=$310/50=$6.20
	=80/30 = $2.66
	3
	90
	40
	$150+($80*3)=$390
	=$390/90=$4.33
	=80/40 =$2
	4
	120
	30
	$150+($80*4)=$470
	=$470/120=$3.91
	=80/30 =$2.66
	5
	140
	20
	$150+($80*5)=$550
	=$550/140=$3.92
	=80/20 =$4
	6
	150
	10
	$150+($80*6)=$630
	=$630/150=$4.2
	=80/10=$8
	7
	155
	5
	$150+($80*7)=$710
	=$710/155=$4.

Week 7 homework XXXXXXXXXXECO 105 XXXXXXXXXXDue date: 05/14/2021 1) In the following market, Workers Output Marginal Product Total Cost Average Total Cost Marginal cost 0 0 1 20 2 50 3 90 4 120 5 140...

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