Labor Saving Nonneutral Technical Progress Allows a Firm to

question 46

Multiple Choice

Labor saving nonneutral technical progress allows a firm to

• A)produce more output with the same inputs.
• B)use less labor and the same amount of other inputs to produce the same level of output.
• C)use more labor to produce the same level of output.
• D)use less labor and more of other inputs to produce the same level of output.

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Definitions:

Average Variable Costs

Calculated by dividing the total variable costs by the quantity of output produced; it's the variable cost per unit of output.

Average Variable Costs

an economic measure representing variable costs (expenses that change with production levels) averaged over a quantity of output.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as the production volume is increased.

Average Variable Cost Curve

A graph that displays how the variable cost per unit changes with changes in output level.