Exam 8: Technology, production, and Costs

Table 8-4 Labor (hours) Quantity of Fish (pounds) Marginal Product (pounds) 1 10 2 18 3 24 4 28 5 30 6 32 -Refer to Table 8-4.The table above shows the following relationship between hours spent fishing and the quantity of fish caught for Juan,a commercial fisherman.

The marginal product of labor is defined as

If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units,then the average product of 12 workers is

Describe the difference between technology and positive technological change.

In economics,technology only refers to the development of new products.

The relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs is the firm's

Who was the economist who first analyzed the advantages of specialization and the division of labor?

The production function shows

When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm

The marginal cost curve is U-shaped because of the law of increasing opportunity costs.

If,after hiring the 6th worker,a firm's output falls,then the marginal product of the 6th worker is negative.

Figure 8-6 Figure 8-6 contains information about the short run cost structure of a firm. -Refer to Figure 8-6.In the figure above which letter represents the average total cost curve?

The marginal product of labor is defined as

Explain how the listed events (a-d)would affect the following at Hilton Hotels. i.Marginal cost ii.Average variable cost iii.Average fixed cost iv.Average total cost a.Hilton decides on an across-the-board 5 percent increase in executive salaries. b.Hilton decides to eliminate all print advertising. c.Hilton signs a new contract with the Culinary Workers Union that requires the company to increase wages for all its kitchen workers. d.The federal government starts to levy a $5 room tax on all hotel rooms.

Figure 8-11 Figure 8-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATCₐ, ATCb and ATCc. -Refer to Figure 8-11.If the firm chooses to produce and sell 25,000 frames per month by operating in the short run with a scale operation represented by ATCc

Figure 8-11 Figure 8-11 illustrates the long-run average cost curve for a firm that produces picture frames.The graph also includes short-run average cost curves for three firm sizes: ATCₐ, ATCb and ATCc. -Refer to Figure 8-11.For output rates greater than 20,000 picture frames per month

What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business.

State the law of diminishing marginal returns.

Describe how Wal-Mart has used positive technological change to manage its inventory.

Figure 8-1 -Refer to Figure 8-1.Diminishing marginal productivity sets in after