How Do You Explain the Fact That, Over the Last

question 19

Essay

How do you explain the fact that, over the last century, real wages in the U.S. increased substantially while the average number of hours worked per person fell?

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Definitions:

LAC Curves

Long Average Cost curves, which show the minimum average cost of production at different levels of output, assuming all production factors are variable.

Output Levels

The quantities of goods or services produced by a firm or industry at a given time or under certain conditions.

Economies of Scale

The economic gains achieved by businesses because of their large scale, volume of production, or extent of operations, which usually results in a reduction in the cost per unit as the scale of operation grows.

Cost-output Elasticity

Cost-output elasticity measures the responsiveness of the cost of producing a good to a change in the output level, indicating how costs change as production scales.