True or false? An increase in Total Factor Productivity always increases the firm’s profit. (You can...
True or false? An increase in Total Factor Productivity always increases the firm’s profit. (You can assume there is no government for simplicity.)
Explain/ support answer
Homework Answers
True.
Total factor productivity is defined as the measure of productivity which is calculated by the total output divided by inputs (labor and capital). A higher ratio indicates more productivity which indicates the efficiency of capital and labor being used in the production process. So an increase in total factor productivity leads to increase in more output for the same resources being used which reduces the cost and increases the profit.
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True or false? An increase in Total Factor Productivity always
increases the firm’s profit. (You can...
In the one-period model in Chapter 5, an increase in total factor productivity
In the one-period model in Chapter 5, an increase in total factor productivity reduces consumption, increases output, and increases the real wage. increases consumption, increases output, and increases the real wage. reduces consumption, reduces output, and reduces the real wage. reduces consumption, increases output and reduces the real wage.
True, False, or Uncertain: Increases in productivity lead to lower wages because firms don’t need as...
True, False, or Uncertain: Increases in productivity lead to lower wages because firms don’t need as many workers as before to produce the same number of goods. Explain Why this is or is not true
Suppose there is a permanent increase in total factor productivity. Show what will happen to wages...
Suppose there is a permanent increase in total factor productivity. Show what will happen to wages and the equilibrium quantity of labor using a graph of the labor market. Explain. Why is your answer different from problem number (3)?
3. Which determinant(s) of worker's productivity technology (or more gen- erally total factor productivity) A, physical...
3. Which determinant(s) of worker's productivity technology (or more gen- erally total factor productivity) A, physical capital per worker human capital per worker , and/or natural resources per worker †l will be affected and how (increase or decrease) if the government: (a) increases grants for academic research (b) restricts low-skilled labor immigration (c) improves the quality of the health care system (d) attracts foreign direct investment (e) engages in inward-oriented trade policies (f) is ousted by a military coup, which...
True or False & why: If you can increase production 10% by increasing all inputs by 20% the production process exh...
True or False & why: If you can increase production 10% by increasing all inputs by 20% the production process exhibits diminishing marginal productivity
How can you compute total factor productivity growth using observable statistics? Take a growth rate of...
How can you compute total factor productivity growth using observable statistics? Take a growth rate of output of 6%, a growth rate of labor of 3%, a growth rate of capital of 8%, and a share of capital of 40%. Calculate total factor productivity growth rate and interpret your result
Need help, Wil upvote thank you! Assume that total output can be computed by using the...
Need help, Wil upvote thank you! Assume that total output can be computed by using the following formula: Total output = number of workers x productivity Assume that there are 120 workers and each worker produces $200 of output. How fast can output increase if the workforce increases by 5% and productivity increases by 7? Round your answer to 2 decimal places as a percentage.
Appeicate an economics expert answer True/False Questions 1 through 7 Name True/False Indicate whether the statement...
Appeicate an economics expert answer True/False Questions 1
through 7
Name True/False Indicate whether the statement is true or false. 1.A competitive fim's profit will be increasing as long as marginal revenue is greater than marginal cost. a True b. False 2. The "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market. a. True b. False 3. A profit-maximizing firm in a competitive market will decrease production when marginal cost exceeds average...
2. If an incumbent firm in an industry increases the modularity of their product's architecture, they will always choose to outsource one of the resulting modules. True or False? Explain why? (Wor...
2. If an incumbent firm in an industry increases the modularity of their product's architecture, they will always choose to outsource one of the resulting modules. True or False? Explain why? (Word Count: 150)
Classify each statement as either true or false. New technological developments can help us adapt to...
Classify each statement as either true or false. New technological developments can help us adapt to depleting sources of natural resources. Research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. In order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. Countries with few natural resources will always be poor. As long as real GDP (gross...
3. Which determinant(s) of worker's productivity technology (or more gen- erally total factor productivity) A, physical capital per worker human capital per worker , and/or natural resources per worker †l will be affected and how (increase or decrease) if the government: (a) increases grants for academic research (b) restricts low-skilled labor immigration (c) improves the quality of the health care system (d) attracts foreign direct investment (e) engages in inward-oriented trade policies (f) is ousted by a military coup, which...
Appeicate an economics expert answer True/False Questions 1
through 7
Name True/False Indicate whether the statement is true or false. 1.A competitive fim's profit will be increasing as long as marginal revenue is greater than marginal cost. a True b. False 2. The "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market. a. True b. False 3. A profit-maximizing firm in a competitive market will decrease production when marginal cost exceeds average...
Classify each statement as either true or false. New technological developments can help us adapt to depleting sources of natural resources. Research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. In order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. Countries with few natural resources will always be poor. As long as real GDP (gross...
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