In Techland, from 1980 to 2010, Holding Technology and Human

question 218

Multiple Choice

In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. What was the annual growth rate of real GDP per capita in Techland?

• A) 2.0%
• B) 4.5%
• C) 7%
• D) 17.5%

Distinguish between capacity and demand options in aggregate planning.

Appreciate the implications of using pure level and pure chase strategies in planning.

Explain the significance of incorporating historical managerial performance in planning.

Understand the concept and applications of yield management in industries with perishable inventory.

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Definitions:

Economic Profit

The financial difference resulting from deducting both visible and hidden costs from total revenue.

Profit-Maximizing Level

The point at which a business achieves its highest level of profit with its current resources and market conditions.

Economic Profit

The gap highlighted by the difference in total income and total outgoings, including every cost, for a company.

Monopolistically Competitive

A monopolistically competitive market structure is characterized by many firms offering differentiated products or services, allowing for some degree of market power and pricing over their unique products.