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Q. Crumble Corporation produces cookies. Here is the relationship between the number of workers also o/p (in dozens of cookies) in a given day:
Workers O/p Marginal Product Total Cost Standard Total Cost Marginal Cost0 0
1 28
2 50
3 67
4 80
5 90
6 95
7 96
a. Fill in the column of marginal products. Illustrate what pattern do you see? How might you explain it?
b. A worker costs %30 per day and the industry has fixed costs of $10. Utilize this information to fill in the column for total cost.
c. Fill in the column for standard total cost. (Recall which ATC = TC/Q). Illustrate what pattern do you see?
d. Now fill in the column for marginal cost. (Recall which MC = ?TC/?Q). Illustrate what pattern do you see?
e. Compare the column for marginal product also the column for marginal cost. Illustrate what pattern do you see?
f. Compare the column for standard total cost also the column for marginal cost. Explain the relationship
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