Assume there is an improvement in technology that increases the marginal product of each unit of labor. This would have the effect of:
A) reducing the average total cost, average variable cost, and marginal cost of production.
B) increasing the average total cost, average variable cost, and marginal cost of production.
C) reducing the average variable cost and marginal cost of production, but average total cost would be unchanged.
D) reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.
A
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One of the more unique aspects of NAFTA compared with other preferential trade arrangements is the fact that the NAFTA countries have
A) similar cultures. B) fixed exchange rates. C) common borders. D) very different standards of living.
From 1950-2014 the price level in the United States increased more than
A) twofold. B) threefold. C) sixfold. D) tenfold.
Moral hazard is a problem
A) peculiar to direct finance. B) peculiar to mutual funds. C) arising before a transaction is consummated. D) arising after a transaction is consummated.
If the government charged a tax on monopolists equal to, say, 75 percent of their economic profits, what would happen to the level of output the firm would produce? What about the price? Explain