Assume There Is an Improvement in Technology That Increases the Marginal

question 45

Multiple Choice

Assume there is an improvement in technology that increases the marginal product of each unit of labor.This would have the effect of:

• A)reducing the average total cost, average variable cost, and marginal cost of production.
• B)increasing the average total cost, average variable cost, and marginal cost of production.
• C)reducing the average variable cost and marginal cost of production, but average total cost would be unchanged.
• D)reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific time, showing assets, liabilities, and shareholder equity.

Vertical Integration

A method by which a firm broadens its activities to cover multiple points within its production sequence, like when a manufacturing entity possesses its supplier and/or distribution channels.

Ethical Supply Management

The practice of ensuring that the supply chain operations adhere to ethical standards, including fairness, sustainability, and respect for human rights.