1a. How will an improvement in technology change total product, average product, marginal product, total cost,...
1a. How will an improvement in technology change total product, average product, marginal product, total cost, average cost, and marginal cost in the short run?
1b. How will an increase in the wage a business pays affect total product, average product, marginal product, total cost, average cost, and marginal cost in the short run?
Homework Answers
Improvement in technology will increase labor productivity. This implies that both marginal product and average product functions are shifted up (increased). This also increases total product. Since each unit of labor produces more, the average cost and marginal cost curve shift down as they both decline. This also reduces total cost of production.
Increase in the wage rate would increase total cost because now each labor unit is expensive. As marginal cost of production is the wage rate, and average cost is total cost per unit, increase in total cost increases both marginal cost and average cost. This declines the total output as increased wage implies less productivity. Hence both marginal product and average product functions are shifted down as they fall.
Add Answer to:
1a. How will an improvement in technology change total product,
average product, marginal product, total cost,...
1a. Marginal cost is equal to the change in: A. variable cost divided by the change...
1a. Marginal cost is equal to the change in:
A. variable cost divided by the change in total output.
B. average total cost divided by the change in total output.
C. fixed cost divided by the change in total output.
D. average variable cost divided by the change in total
output.
(Figure: Determining Industry Cost Characteristics) Short-run
and long-run supply curves with short-run market equilibrium at
points A and B are shown in the graph. We can
conclude that the...
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average...
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
[47] In the short-run, marginal cost crosses average total cost at the minimum of average total...
[47] In the short-run, marginal cost crosses average total cost at the minimum of average total cost. A. True False
Marginal cost: rises as long as marginal product continues to fall is the total cost of...
Marginal cost: rises as long as marginal product continues to fall is the total cost of producing each unit of output is average product divided by the change in total cost is marginal product divided by the change in total cost O is the change in total cost divided by the change in average product
a. Explain how total product curves and short run total cost curves change when there is...
a. Explain how total product curves and short run total cost curves change when there is a technological change that increases productivity where that means that the firm can produce more output with the same level of labour. b. Explain how short-run cost curves change when the price of labour increases. c. Explain how short-run cost curves change when the price of capital increases.
Q1: The following graph shows the current short-run average total cost (ATC), short-run marginal cost (MC),...
Q1: The following graph shows the current short-run average total cost (ATC), short-run marginal cost (MC), and long-run average cost (LATC) curves of a typical perfectly competitive firm that uses only labour and physical capital to produce its product and the current market price (PⓇ). S/unit MC ATC LATC B Pa E Q1 Q2 Quantity a) How many units of output would the firm choose to produce in the short run? Explain. b) Is the firm making an economic profit...
Which of the following statements is sequentially correct? Changes in marginal physical product change marginal cost,...
Which of the following statements is sequentially correct? Changes in marginal physical product change marginal cost, which changes average variable and average total cost. Changes in marginal cost change marginal physical product, which changes average variable and average total cost. Changes in average variable cost change marginal cost, which changes average total cost, which changes marginal physical product. Changes in average variable and average total cost change marginal cost, which changes marginal physical product.
Marginal Productivity and Marginal Cost Crepes Work hours Mworkers Or the change in Work hours MC...
Marginal Productivity and Marginal Cost Crepes Work hours Mworkers Or the change in Work hours MC (at wage of $20/hour), inputs at $5 MPL amount that one worker would produce 1 0.05 2 0.2 3 0.45 4 0.8 5 1.25 6 1.8 7 2.45 8 3.2 9 4.05 10 5 In the short-run, how can you increase production? Fill in the table. After the first dinner, what happens to the time needed for each additional crepe? Why? What happens to the marginal...
Marginal cost is the change in total cost caused by a one-unit increase in output. A)...
Marginal cost is the change in total cost caused by a one-unit increase in output. A) True B) False Average total cost is equal to average variable cost plus average fixed cost. A) True B) False Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources, the marginal product decreases. A) True B) False
1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20
1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. WorkersOutputMarginal ProductTotal CostAverage Total CostMarginal Cost00---------1202503904120514061507155a. Using the information above, calculate the marginal product, total cost, average total cost, and marginal cost. Identify the output level at minimum average total cost for Toys Create Corp. b. Construct the marginal-cost and average-total-cost curves for Toys Create Corp. Using your own words, explain diminishing marginal product and...
1a. Marginal cost is equal to the change in:
A. variable cost divided by the change in total output.
B. average total cost divided by the change in total output.
C. fixed cost divided by the change in total output.
D. average variable cost divided by the change in total
output.
(Figure: Determining Industry Cost Characteristics) Short-run
and long-run supply curves with short-run market equilibrium at
points A and B are shown in the graph. We can
conclude that the...
Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
[47] In the short-run, marginal cost crosses average total cost at the minimum of average total cost. A. True False
Marginal cost: rises as long as marginal product continues to fall is the total cost of producing each unit of output is average product divided by the change in total cost is marginal product divided by the change in total cost O is the change in total cost divided by the change in average product
Q1: The following graph shows the current short-run average total cost (ATC), short-run marginal cost (MC), and long-run average cost (LATC) curves of a typical perfectly competitive firm that uses only labour and physical capital to produce its product and the current market price (PⓇ). S/unit MC ATC LATC B Pa E Q1 Q2 Quantity a) How many units of output would the firm choose to produce in the short run? Explain. b) Is the firm making an economic profit...
Which of the following statements is sequentially correct? Changes in marginal physical product change marginal cost, which changes average variable and average total cost. Changes in marginal cost change marginal physical product, which changes average variable and average total cost. Changes in average variable cost change marginal cost, which changes average total cost, which changes marginal physical product. Changes in average variable and average total cost change marginal cost, which changes marginal physical product.
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