What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice
What will be an ideal response?
The two primary factors are the technology of the production process and the prices of the inputs of production. The technology determines the marginal productivity of the different inputs that can be used in the production process. Combining information on the marginal productivities with the respective prices of the inputs tells the manager how much output is produced per dollar spent on each input. With this information, the manager can then select the combination of inputs that yields a given level of output at least cost.
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A) has not, is not B) has not, is C) has, is not D) has, is
To understand how decisions about military expenditures are made, it is probably most important to understand _____
a. geography b. economic warfare c. the political process d. strategic alliances
The impact of monetary policy on prices and output depends on the
A. regulations passed by Congress. B. cooperation from business leaders. C. slope of the aggregate demand curve. D. slope of the aggregate supply curve.
An increase in supply is shown graphically as a ________ shift of the supply curve, and as a result of an increase in supply, equilibrium price will ________.
A. leftward; decrease B. rightward; increase C. leftward; increase D. rightward; decrease