Nimbus, Inc. makes brooms and then sells them door to door. Her is the relationship between the number of workers and Nimbus's output in a given day:
Workers Output
0 0
1 20
2 50
3 90
4 120
5 140
6 150
7 155
a. What is the marginal product for each worker?
b. A worker costs $100 a day and fixed costs are $200. What is the firm's total cost for the each level of output?
c. What is average total cost?
d. What is marginal cost?
e. Compare marginal product and marginal cost. Explain the relationship.
f. Compare average total cost and marginal cost. Explain the relationship.