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The Adoption of New Technologies and the Use of Sophisticated

question 23

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The adoption of new technologies and the use of sophisticated equipment in the provision of medical care has greatly increased the demand for highly skilled workers relative to less-skilled workers.This development is an example of ________.


Definitions:

Marginal Cost

The expense associated with manufacturing an extra single unit of a product or service.

Profit Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profits.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues; represents the extra amount over the payment needed to keep a resource in its current use.

P = ATC

An equation indicating the price level (P) at which the average total cost (ATC) of production is exactly met, often representing a break-even point for firms in competitive markets.

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