myeconlab quiz 6 – Flashcards
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a firm is able to cut each workers wage rate by 10 percent and still produce the same level of output? is or is not an example of a positive technological change?
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is not
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a training program makes a firms workers more productive. is or is not an example of a positive technological change?
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is
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an exercise program makes a firms wooers more healthy and productive. is or is not an example of a positive technological change?
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is
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a firm buts its workforce and is able to maintain its initial level of output. is or is not an example of a positive technological change?
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is
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a firm rearranges the layout of its factory and finds that using its initial set of inputs, it can produce exactly as much as before. is or is not an example of a positive technological change?
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is not
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in economics the best definition of technology is
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the process a firm uses to turn inputs into outputs
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positive technological change is defined as
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being able to produce more output using the same inputs and being able to produce the same out using fewer inputs
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what is the difference between the short run and the long run?
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in the short run at least one of a firms inputs is fixed, while in the long run, a firm is able to very all its inputs and adopt new technology
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is the amount of time that separates the short run from the long run the same for every firm?
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no
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any cost that remains unchanged as output changes represents a firms ____
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fixed cost
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any cost that changes as output changes represents a firms ______
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variable cost
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which of the following is most likely to be a fixed cost for a farmer?
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insurance premiums on property
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which of the following is most likely to be a veritable cost for a business firm?
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cost of shipping products
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the payment she makes on her fire insurance policy is a _____cost
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fixed
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payment she makes to buy pizza dough for a restaurant is a _____ cost
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variable
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the least payment she makes to her landlord who owns the building where her store is located is a _____ cost
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fixed
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the 300$ per month payment she makes to her local news paper for running her weekly advertisements is a ____ cost
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fixed
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is it possible for average total cost to be decreasing over a range of output where marginal cost is increasing?
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yes, if marginal cost is less than average total cost, then average total cost will be decreasing
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minimum efficient scale is
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the level of output at which the long run average cost of production no longer decreases with output
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a firm that does not reach its minimum efficient scale
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will lose money if it remains in business
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diseconomies of scale is
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when a firms long run average costs increase with output
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what is the main reason that firms eventually encounter diseconomies of scale as they keep increasing the size of their store factory?
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firms have difficulty coordinating production
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suppose there are substantial economies of scale related to oil production from tracking. what is the likely outcome?
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firms will combine through mergers and acquisitions to become larger
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what are the 3 conditions for a market to be perfectly competitive?
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many buyers and sellers all firms selling identical products no barriers to new firms entering the market
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when maximizing profits, MR=MC is equivalent to P=MC because
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the marginal revenue curve for a perfectly competitive firm is the same as its demand curve.
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when are firms likely to enter an industry? when are they likely to exit?
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economic profits attract firms to enter an industry, and economic losses cause firms to exit an industry
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in long run competitive equilibrium, a firm earning zero economic profit
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will continue to produce because such profit corresponds with positive accounting profit
