ECO CH 11
Which of the following is 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.
Which of the following equations is correct?
AFC + AVC = ATC
A characteristic of the long run is
All inputs can be varied
Diminishing marginal product of labor occurs when adding another unit of labor
changes output by an amount smaller than the output added by the previous unit of labor.
If production displays economies of scale, the long-run average cost curve is
downward-sloping.
A firm has successfully adopted a positive technological change when
it can produce more output using the same inputs.
The change in a firm's total cost from producing one more unit of a good or service is the firm's
marginal cost of production.
If marginal product is greater than average product, then
marginal product could either be increasing or decreasing.
Long-run cost curves are U-shaped because
of economies and diseconomies of scale.
Which of the following are implicit costs for a typical firm?
opportunity costs of capital owned and used by the firm
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.
The marginal product of labor is defined as
the additional output that results when one more worker is hired, holding all other resources constant.
When a firm experiences a positive technological change
the firm is able to produce more output using the same inputs, or the same output using fewer inputs.
When the marginal product of labor rises
the marginal cost of production falls
The basic activity of a firm is
to use inputs to produce outputs of goods and services.
Which of the following costs will not change as output changes?
total fixed cost
