Manton Bakery is a company that bakes bread. Here is the relationship between the number of workers at the bakery and Manton’s output in a given day:

a. Fill in the column of marginal product. What pattern do you see? How might you explain it?

b. A skilled baker costs €100 a day, and the firm has fixed costs of €200. Use this information to fill in the column for total cost.

c. Fill in the column for average total cost.

d. Now fill in the column for marginal cost.

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.

Transcribed Image Text:

Workers Output of loaves Marginal product Total cost Average total cost Marginal cost 01234569 0 20 50 90 120 140 150 155