At the End of 2018, Diatomic Company Implemented a New

question 104

Multiple Choice

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2018&2019\text { Output } & 45,000 & 54,000 \\\text { Output prices } & \$ 10 & \$ 10 \\\text { Materials (lbs.) } & 22,500 & 22,950 \\\text { Materials unit price } & \$ 3 & \$ 4 \\\text { Labor (hrs.) } & 18,000 & 16,875 \\\text { Labor rate per hour } & \$ 5 & \$ 5 \\\text { Power (kwh) } & 11,250 & 14,625 \\\text { Price per kwh } & \$ 2 & \$ 3\end{array}$ What is the partial operational measure for power for 2019?

• A)3.69
• B)1.00
• C)1.15
• D)4.00

Understand the potential outcomes of eliminating patents on innovation across different industries.

Identify how patents can either promote or hinder innovation, depending on the context and the nature of the product.

Grasp the characteristics of the long-run supply curve in different types of industries.

Understand the long-run equilibrium position of firms in competitive markets with respect to average total cost.

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Definitions:

Withdraw The Offer

The act of revoking or cancelling a proposal or bid that had previously been made.

Present Obligation

A current duty or responsibility that an entity has as a result of past events, which will likely require an outflow of resources.

Restructuring

The process of organizing a company or its operations differently to increase efficiency or improve profitability, often involving changes in business model, operations, or staff.

Historical Pattern

Trends or sequences in data that have been observed to repeat over historical periods, often used for forecasting and analysis.