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A firm has successfully adopted a positive technological change when… |
It can produce more output using the same inputs. |
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The difference between technology and technological change is that… |
Technology: transforms inputs into output Technological: given level of output with a given quantity of inputs |
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An example of positive technological change |
A firm’s workers participate in a training program designed to increase the number of surf boards they can produce per day. |
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Which of the following statements best describes the chain stores’ actions? |
The firm is able to produce more output (increase its sales) using fewer inputs (less trucks). Therefore, the chain of convenience stores has implemented a positive technological change. |
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The best activity of a firm is |
To use inputs to produce outputs of goods and services. |
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A characteristic of the long run is |
All inputs can be varied. |
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Which of the following is a factor of production that generally is fixed in the short run? |
A factory building |
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Which of the following is an example of a long run adjustment? |
Walmart builds another supercenter |
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Which of the following is the best example of a shirt run adjustment? |
Your local Walmart his two more associates |
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If a producer is not able to expand its plant capacity immediately, it is… |
Operating in the short run |
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Which of the following is a fixed cost |
Payment to hire a security worker to guard the gate to the factory around the clock |
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Implicit cost can be defined as |
The non monetary opportunity cost of using the firm’s own resources |
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Which of the following is an implicit cost of production |
Went that could have been earned on a building owned and used by the firm |
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Jayanthi moves her yoga studio from her home to a space she raised in Oakland California holding everything else constant as a result of this move |
Her implicit cost falls in her explicit cost rises |
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Based on this information what is the amount of explicit cost |
45500 |
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The average total cost of production |
Equals total cost of production divided by the level of output |
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The long run refers to a time period |
Long enough for firm to vary all of its inputs, to adopt new technology and change the size of its physical plant |
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The marginal product of labor is defined as |
The additional output that results when 1 more worker is hired holding all other resources constant |
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If for work is Kim produced 18 chairs a day in five can produce 20 chairs and a the marginal product of the fifth worker is |
Two chairs |
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The law of diminishing marginal returns States |
That at some point adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline |
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The law of diminishing marginal returns |
Explains why the average total cost and marginal cost curve are U-shaped in the short run |
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As a firm hires more labor in the short run the |
Extra output of another worker may rise at first but eventually must fall |
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The marginal product of the third worker is 57 – 42 |
15 |
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The average product of the fourth worker |
17 |
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Diminishing marginal productivity sets in after |
The second worker is hired |
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If 11 workers can produce a total of 54 units of a product and the 12 worker has a marginal product of 6 units then the average product of 12 workers is |
5 units |
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Marginal cost is equal to the |
Change in total cost divided by the change in output |
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Marginal cost is the |
Additional cost of producing an additional unit of output |
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When a firm produces 50,000 units of output is total cost equals six point five million when it increases its production to 70 thousand units of output its total cost increases to 9.4 million within this range the marginal cost of an additional unit of output is |
$145 |
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Which of the following cost will not change as output changes |
Total fixed cost |
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Average fixed cost of production |
Fall as long as output is increased |
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Which of the following explains why the marginal cost curve has a u-shape |
Initially the marginal product of labor rises then falls |
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The cost of ingredients to make a gyro is $2 she pays her employees $60 per day she also includes a fix cause of $120 per day calculate her variable costs per day when she produces 50 gyros using two workers |
$220 |
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The cost of ingredients to make a gyro is $2 she pays her employees $60 per day she also and cures a fixed cost of $120 per day calculate her total cost per day when she produces 50 gyros using two workers |
$340 |
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The cost of ingredients to make a gyros $2 she pays her employees $60 per day she also and cures a fixed cost of $120 per day calculate average fixed cost per day when she produces 50 gyros using two workers |
$2.40 |
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The cost of ingredients to make a gyros $2 she pays her employees $60 per day she also has a fix cause of $120 per day what is her total cost for the day when she does not produce any gyros and does not hire any workers |
$120 |
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