Cost Saving Technologies Result in an Increase in Economic Profits

question 89

True/False

Cost saving technologies result in an increase in economic profits in both the short run and the long run.

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Definitions:

Machine-hours

A measure of production volume or capacity, representing the total hours that machines are operational within a given period.

Power Costs

The expenses associated with the consumption of electricity or other forms of energy used in the production process.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a period, which can be either favorable or unfavorable.

Budgeting

The process of creating a plan to spend your money, outlining how much money will be earned and how it will be spent.