Exam 8: Technology,Production,and Costs

The president of Toyota's Georgetown plant was quoted as saying,"Demand for high volumes saps your energy.Over a period of time,it eroded our focus [and] thinned out the expertise and knowledge we painstakingly built up over the years." This quote suggests that

In his book The Wealth of Nations,Adam Smith employed the example of a pin factory in order to explain what economic concept?

Ford Motor Company started producing the Model A at plants scattered around the United States

Table 8-7 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 11.8 115 200 12.5 117 200 1264 1464 120 200 1480 Table 8-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. -Refer to Table 8-7.What is the marginal cost per unit of production when the firm produces 100 lanterns?

If a firm decreases its plant size and finds that its long-run average costs have decreased,then

Average fixed costs of production

Figure 8-7 Figure 8-7 shows the cost structure for a firm. -Refer to Figure 8-7.If output is 100 units what is the fixed cost of production?

Stan owns a software design business.He does not have time to expand his office space or redesign the layout of his office.He can increase the amount of work he does by working more hours,asking his current employees to work more hours,or hiring more employees.The relationship between Stan's inputs and the maximum output his firm can produce is called his

The law of diminishing marginal returns

If we have information about workers' marginal products,then total and average product can be found by

At the minimum efficient scale

When Segment.com implemented changes which allowed it to increase productivity with the same number of workers,this represented a positive technological change.

The change in a firm's total cost from producing one more unit of a good or service is

The marginal product of labor is defined as

When a firm experiences a positive technological change

Suppose the total cost of producing 40,000 flash drives is $120,000,and the fixed cost is $30,000. a.What is the variable cost? b.When output is 40,000,what are the average variable cost and the average fixed cost? c.Assuming the cost curves have the usual shape,is the dollar difference between the average total cost and the average variable cost greater when the output is 40,000 flash drives or when the output is 60,000 flash drives? Explain.

Economic costs include implicit costs but not explicit costs.

The change in a firm's total cost from producing one more unit of a good or service is the firm's

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

What is the difference between "diminishing marginal returns" and "diseconomies of scale"?