question
the difference between technology and technological change is that
answer
technology refers to the process used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs
question
the processes a firm uses to turn inputs into outputs of goods and services is called
answer
technology
question
a characteristic of the long run is
answer
all inputs can be varied
question
which of the following is a factor of production that generally is fixed in the short run?
answer
a factory building
question
if a producer is not able to expand its plant capacity immediately, it is
answer
operating in the short run
question
implicit costs can be defined as
answer
the non-monetary opportunity cost of using the firm's own resources
question
which of the following statements best describes the economic short run?
answer
it is a period during which at least one of the firm's inputs is fixed
question
in the long run which of the following is true?
answer
there are no fixed costs
question
the marginal product of labor is defined as
answer
the additional; output that results when one more worker is hired, holding all other resources constant
question
if four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is
answer
2 chairs
question
the law of diminishing marginal returns states
answer
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
question
as a firm hires more labor in the short run, the
answer
extra output of another worker may rise at first, but eventually must fall
question
marginal cost is equal to
answer
change in total cost divided by the change in output
question
marginal cost is the
answer
additional cost of producing an additional unit of output
question
in the short run, if marginal product is at its maximum, then
answer
marginal cost is at its minimum
question
average fixed costs of production
answer
fall as long as output is increased
question
if the marginal cost curve is below the average variable cost curve, then
answer
average variable cost is decreasing
question
if, when a firm doubles all its inputs, its average cost of production decreases, then production displays
answer
economies of scale
question
at the minimum efficient scale
answer
the firm has achieved the lowest possible average cost of production
question
when a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays
answer
constant returns to scale
question
which of the following equations is correct?
answer
...
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
