Mirco Ch 11

How are implicit costs different from explicit​ costs? A. An explicit cost is a cost that involves spending​ money, while an implicit cost is a nonmonetary cost. B. An explicit cost is not an opportunity​ cost, while an implicit cost is an opportunity cost. C. An explicit cost is a cost incurred in the short ​run, while an implicit cost is a cost incurred in the long run. D. An explicit cost is a cost incurred as output changes ​, while an implicit cost is a cost incurred holding output constant . E. Both a and b.

An explicit cost is a cost that involves spending​ money, while an implicit cost is a nonmonetary cost.

When a positive technological change​ occurs, A. more output can be produced from the same inputs. B. the same output can be produced with fewer inputs. C. Either​ (a) or​ (b). D. None of the above.

Either​ (a) or​ (b).

What is the difference between the short run and the long​ run? A. In the short​ run, all of a​ firm's inputs are​ fixed, while in the long​ run, a firm is able to vary all its inputs and adopt new technology. B. In the short​ run, at least one of a​ firm's inputs is​ fixed, while in the long​ run, a firm is able to vary all its inputs and adopt new technology. C. In the short​ run, a firm can vary all inputs but technology is​ fixed, while in the long​ run, a firm can adopt new technology but all inputs are fixed. D. In the short​ run, all of a​ firm's inputs are​ fixed, while in the long​ run, a firm is able to vary at least one input and adopt new technology . E. In the short​ run, a firm can vary all inputs but technology is​ fixed, while in the long​ run, a firm can vary all inputs and adopt new technology.

In the short​ run, at least one of a​ firm's inputs is​ fixed, while in the long​ run, a firm is able to vary all its inputs and adopt new technology.

Is it possible for technological change to be​ negative? If​ so, give an example. A. No. Technological change is neither positive or negative because it refers to a process. B. It is possible for technological change to be negative. An example is when workers go through a training program . C. It is possible for technological change to be negative. An example is when a firm hires less minus skilled workers . D. It is possible for technological change to be negative. An example is when a firm installs more reliable equipment . E. No. Technological change is always positive because it refers to the development of new products.

It is possible for technological change to be negative. An example is when a firm hires less skilled workers

What is the difference between technology and technological​ change? A. Technology is the development of new​ products, while technological change is when a firm is able to produce more output with the same inputs. B. Technology is when a firm is able to produce the same output using fewer ​inputs, while technological change is the process of using inputs to make output. C. Technology is the development of new​ products, while technological change is when a firm is able to produce the same output with fewer inputs. D. Technology is the process of using inputs to make​ output, while technological change is when a firm is able to produce more output using more inputs. E. Technology is the process of using inputs to make​ output, while technological change is when a firm is able to produce more output using the same inputs.

Technology is the process of using inputs to make​ output, while technological change is when a firm is able to produce more output using the same inputs.

What are implicit​ costs? An implicit cost is A. a cost that remains constant as output changes. B. a cost incurred in the long run. C. a nonmonetary opportunity cost. D. a cost that changes as output changes. E. the​ highest-valued alternative that must be given up to engage in an activity.

a nonmonetary opportunity cost.

Any cost that remains unchanged as output changes represents a​ firm's A. variable cost. B. fixed cost. C. opportunity cost. D. marginal cost.

fixed cost.

What is a production​ function? A​ firm's production function is best described as A. a relationship between the total cost of production and the level of output. B. a relationship between different inputs that the firm uses to produce a fixed amount of output. C. a relationship between the amounts of outputs of different products the firm can produce with fixed amounts of inputs. D. illustrating the relationship between inputs and the maximum amounts of output that the firm can produce with these inputs.

illustrating the relationship between inputs and the maximum amounts of output that the firm can produce with these inputs.

Small business owner Jay Goltz described several decisions he made to reduce the fixed costs of his​ businesses, including replacing halogen lamps with LED lamps. Goltz​ noted, "...I'm guessing that many business owners could save a lot more than pennies on their fixed​ costs, and those savings...fall right to the bottom​ line." ​Source: Jay​ Goltz, "Not All Fixed Costs Are Truly​ Fixed," New York Times​, May​ 25, 2011. a. The cost of electricity used to power the lights used in Mr.​ Goltz' businesses are fixed costs because these costs A. cannot be negotiated. B. are paid to one provider. C. must be paid regardless of the volume of output. D. are unpredictable.

must be paid regardless of the volume of output.

The relationship between the inputs employed by a firm and the maximum output it can produce with those inputs is called the A. production function. B. budget constraint. C. utility curve. D. consumption function.

production function

What does the​ short-run production function hold​ constant? A​ short-run production function holds constant A. the amount of capital. B. the amount of output. C. the amount of labor. D. the amounts of all inputs.

the amount of capital.

Which costs are affected by the level of output​ produced? A. fixed costs B. variable costs C. all costs D. sunk costs

variable costs

​EOG, a​ Texas-based producer of oil and​ gas, is called the​ "Apple of​ oil" because of the​ company's history of developing innovative methods to extract energy from shale rock. Using one of​ EOG's innovations, called​ iSteer, the company can navigate through thousands of feet of rock with a drill bit that allows for greater recovery of oil and gas than methods the company previously used. ​Source: Erin​ Ailworth, "Fracking​ 2.0: Shale Drillers Pioneer New Ways to Profit in Era of Cheap​ Oil," Wall Street Journal​, March​ 30, 2017. Briefly explain why economists would consider​ EOG's use of iSteer an example of technological change. A. EOG is able to recover oil and gas with less labor by using more capital. B. ​EOG's use of iSteer enables it to recover more oil and gas with a certain quantity of inputs. C. The​ company's use of iSteer allows it to recover both oil and gas. D. The​ company's use of iSteer enables it to recover oil and gas using different combinations of inputs.

​EOG's use of iSteer enables it to recover more oil and gas with a certain quantity of inputs.