1. JC’s (for Josh and Charlie’s) Dead by Dawn is an extreme fitness center. JC’s
ID: 1111892 • Letter: 1
Question
1.JC’s (for Josh and Charlie’s) Dead by Dawn is an extreme fitness center. JC’s innovative training methods results in their clients either achieving the best physical condition of their lives or premature expiration – whichever comes first.
The relationship between the number of trainers JC’s employs and the number of people trained each day is listed in the table below.
Number of Output Marginal Total Average Marginal
Trainers (number trained) Product Cost Total Cost Cost
0
15
30
50
65
75
80
83
E)Compare the columns for marginal product and marginal cost. Explain the relationship.
F)Compare the columns for average total cost and marginal cost. Explain the relationship.
Explanation / Answer
The table is completed below
e) MP and MC shows inverse relationship. When MP rises, MC falls and when MP falls, MC rises. This implies MP is Inverse U shaped and MC is U-shaped
f) When MC > ATC. ATC is rising. When MC < ATC, ATC falls. When MC = ATC, ATC is minimum.
Number of trainers Output Marginal product Total cost Average total cost Marginal cost 0 0 3000 1 15 15 3400 226.67 26.67 2 30 15 3800 126.67 26.67 3 50 20 4200 84.00 20.00 4 65 15 4600 70.77 26.67 5 75 10 5000 66.67 40.00 6 80 5 5400 67.50 80.00 7 83 3 5800 69.88 133.33Related Questions
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