Exam 7: Technology Production and Costs

Damian owns a tattoo parlour and has hired three tattoo artists to work for him.The marginal product of labour is 8 for the first artist, 12 for the second artist, and 7 for the third artist.What is Damian's average product of labour for these three tattoo artists? __________________________________________________________________________________________________________________________________________________________________________________________

Figure 7.1 -Refer to Figure 7.1.Diminishing marginal productivity sets in after

Which of the following statements is true?

Which of the following can a firm do in the long run but not in the short run?

The level of output at which all economies of scale have been exhausted is known as

If the marginal product of labour is decreasing, then marginal cost of production must be rising.

If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.

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

A firm has successfully adopted a positive technological change when

Long-run cost curves are U-shaped because

The slope of an isoquant is equal to the ratio of the price of the input on the horizontal axis divided by the price of the input on the vertical axis, multiplied by -1.

You own a business that answers telephone calls for physicians after their offices close.You have an incentive to substitute capital for labour if the

Which of the following are examples of a firm experiencing a positive technological change? a.A firm is able to reduce its inputs by 15 per cent and still produce the same level of output. b.A seminar attended by the firm's workers makes them more productive. c.A firm adds 5 per cent to its workforce and is able to maintain its initial level of output. d.A firm restructures its distribution system and is able to save on its shipping times. e.A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level. __________________________________________________________________________________________________________________________________________________________________________________________

The law of diminishing marginal returns

The marginal rate of technical substitution is

What is the difference between technology and technological change?

Which of the following statements is true?

If average product is decreasing, then marginal product must be negative.

When a firm experiences negative technological change, it can produce the same output with fewer inputs.

What is the difference between total costs, variable costs, and fixed costs? __________________________________________________________________________________________________________________________________________________________________________________________